Valuation method of entrepreneurial projects in entrepreneurial plan

In a certain period, a publicly listed company has a relatively stable market price/current year (previous period) profit = P/E ratio, which is the company's P/E ratio. The price-earnings ratio of listed companies in different industries is quite different, so the valuation of a company should refer to listed companies in the same category; Use the P/E ratio for equity transactions (private equity participation, mergers and acquisitions, restructuring, etc.). A company (unlisted) often needs to discount the average P/E ratio of similar listed companies, because listed companies have floating premiums, and the discount rate ranges from 5% to 8%.

(1) Income present value method:

Generally speaking, it is to convert the future annual cash flow (not net profit) into the present value, which is the accumulated value of the project. It involves several important parameters: annual profit growth rate and discount rate.

(2) Price-earnings ratio comparison method:

Suppose we are going to invest in a food company A, whose business is similar to that of company B listed on the Hong Kong Stock Exchange, and the average price-earnings ratio of company B in the current three months is 15, then our transaction price can refer to this price-earnings ratio. Considering that Company A is a non-listed company, the trading P/E ratio should be discounted, generally 60% or 70%, which is mainly determined through comprehensive evaluation and negotiation according to the stability of its existing business, future growth potential and team situation.

(3) transaction comparison method:

Suppose a dating website C received a venture capital investment last month, with a valuation of $50 million; Now another venture capital enterprise is interested in our dating website D, and now it is discussing the valuation. We can consult the above valuation for revision. The main reference coordinates are: customer orientation, current registered number, daily average IP hits, growth rate, etc.