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 business worth? This is a very professional and complicated problem.
The valuation of the company helps us to correctly evaluate the intrinsic value of the company or its business, thus establishing the basis for pricing various transactions. At the same time, the company valuation is an important part of the due diligence of investment banks, which is conducive to the exemption of investment banks when problems arise. For investment management institutions, company valuation based on financial model is not only an important research method, but also a basic skill for employees. It can help us:
Turn industry and company knowledge into specific investment advice;
Forecast the company's strategy and the impact of its implementation on the company's value;
In-depth understanding of the relationship between various variables that affect the company's value;
Judging the influence of the company's capital transaction on its value;
Emphasize the development of quantitative research ability