1. Absolute valuation method: discounted cash flow method, including DCF valuation model, equity free cash flow model (FCFE) and company free cash flow model (FCFF).
2. Relative valuation method: determine the value of target assets according to the price of comparable assets in the market, also known as comparability method.
3. Industry coarse algorithm: mainly used for growing Internet enterprises. Because neither absolute nor relative valuation methods can be used to evaluate this early-growing Internet enterprise, it can only be evaluated by industry rough algorithm.
4. Book value method: 1, which directly uses book value as the estimate of enterprise value (generally used by SASAC). 2. liquidation value Law: It means selling the company for XXX. Because the actual liquidation is very difficult, it is only the lowest price of enterprise valuation.
What is company valuation?
Company valuation refers to evaluating the intrinsic value of the company by paying attention to the company itself. The intrinsic value of a company depends on its assets and profitability.
Importance of company value evaluation
Company valuation is the premise of investment, financing and trading. When an investment institution injects a sum of money into an enterprise, the rights it should have first depend on the value of the enterprise. How much is a growing enterprise worth? This is a very professional and complicated problem.