Improvement Research On Income Method In The Valuation Of Deshe Company

The income method is one of the three basic methods for estimating the value of an enterprise.It can take full advantage of economic principles and its evaluation result reflects the intrinsic value of the enterprise.With the establishment of Chinese capital market and enterprises restructuring frequently,it is needed urgently to evaluate the enterprise to make the restructuring fair.The income method has been recognized by asset assessment professionals and the market,and the frequency of use in enterprise assessment has gradually increased.However,due to the existence of some problems in the application of the income method,the accuracy of the income method needs to be improved,and the income method has not been widely applied in the enterprise evaluation.In order to simplify the assessment work and improve the comprehensibility of the evaluation results,it is necessary to give play to the role of the income method in estimating the enterprise assessment and promoting the use of the income method.We will evaluate the Deshe company on December 31,2019 by using the income method and finding the problem and corresponding solution.Starting from the basic concepts and theoretical analysis of income method and enterprise assessment and combining economics theory,this paper studies the practical application of income method by means of literature research method,qualitative,quantitative and case analysis.Taking the representative Deshe company as an example,we'll find the reason affecting the enterprise value comprehensively,and evaluate enterprise practically.The application of enterprise assessment has some problem such as unclear definition of income,uncertainty of income prediction,difficulty in obtaining data related to discount rate,and lack of independent environment in the evaluation process.After we find the knot of the matter such as no uniform standard for parameter selection,difficulty to quantify the future returns,no sound risk measurement database has been established and based on asset assessment industry,it is proposed to establish a unified standard to determine the value of parameters,establish a regression model of income prediction,improve the risk measurement system of capital market,and cultivate and supervise the independence of practitioners so that we can solve the problems above.Finally,we'll use the improved method to evaluate the Deshe company,so as to offer a new idea and make the value more reasonable and fair.