Absolute valuation method: Simply put, it is the discounted cash flow method, including DCF valuation model, equity free cash flow model (FCFE) and company free cash flow model (FCFF).
Relative valuation method: determine the value of target assets according to the price of comparable assets in the market, also known as comparability method. Analogy is very convenient to use, but there are also many places to pay attention to. It is easy to ignore the differences between this company and comparable companies in key factors such as risk, growth and potential cash flow.
Industry coarse algorithm: mainly used for growing Internet enterprises. Because neither the absolute valuation method nor the relative valuation method can evaluate the internet enterprises in the early stage of growth, we can only use the industry rough algorithm to evaluate them. This method has a long history, and it is a relatively primitive industry rough algorithm that Internet companies use click-through rate to evaluate.
Book value method: directly use book value as the estimation of enterprise value (generally SAAC); Liquidation value's Law: Selling a company is worth XXX. Because the actual liquidation is very difficult, it is only the lowest price of enterprise valuation.