A Case Study On The Valuation Of DM Company's Equity Transfer

With the rapid development of market economy and globalization,the operation of capital market has gradually accelerated in China.At the same time,the rapid expansion of capital market makes the research on the valuation of corporate assets and shareholders' equity in various industries more in-depth.In addition,the further improvement and development of the relevant value assessment theory and practice makes the relevant practical theory of corporate shareholders' equity and enterprise value assessment more concerned among the public.In the context of diversified property rights transactions in market economy,the emergence of enterprise shareholders' equity value evaluation makes the enterprise value of our country more important.Therefore,the enterprise shareholders' equity value evaluation is an indispensable part of the development of socialist economy with Chinese characteristics.Both for the managers of the company and the investors outside the company,as long as some investment and financing activities are carried out,such as IPO,enterprise merger or acquisition,it is necessary to entrust an asset evaluation agency to evaluate the equity value and issue an asset evaluation report.In developed countries,the theory and method of enterprise value evaluation is almost mature.Although many western theories and methods have been introduced into China in recent years,they cannot be fully copied in China due to the different degree of market economy improvement and development.Therefore,in view of China's national conditions,it is particularly important to improve the theoretical methods of the evaluation of the shareholders' equity.Starting with the theory and method of enterprise value evaluation,this paper makes an in-depth analysis and Research on the case of enterprise shareholders' equity value evaluation.The case is a Sino foreign joint venture limited liability company.The purpose of the evaluation is to evaluate the equity to be transferred by DM company.At present,there are not many studies on the evaluation of equity transfer value of the limited liability company in China.Through the study of the related theories and methods of asset evaluation at home and abroad,this paper optimizes the methods of asset evaluation of the company.Most of the subjects of assets and liabilities are evaluated by the cost method and the income method,in which the market factors are considered in the evaluation of buildings.This is also one of the reasons for the large gap between the results of the overall use of cost method and income method.The author compares cost method,income method and market method,and get some enlightenment from this case.The author finds that cost method and income method can get more accurate market value for the equity transfer value evaluation of non listed companies.For the current market value of enterprises,we can focus more on the use of cost method,but mainly for single assets and the evaluation of liabilities;in the income method,the acquisition and analysis of data and information of enterprises are highly demanding and subjective.At the end of the paper,some parameters of the free cash flow model in the income method are suggested.At the same time,it is suggested that the comprehensive use of the evaluation method to evaluate the equity value of the enterprise which may lead to more accurate evaluation results.