How to calculate enterprise valuation

Enterprise valuation can be calculated by many methods, the following are some common methods:

1, P/E ratio method: Enterprise valuation is equal to net profit multiplied by P/E ratio. P/E ratio is usually the average P/E ratio of similar enterprises in the same industry. This method is simple and easy to understand, but it cannot consider non-financial factors such as the development potential of enterprises.

2. Cash flow discount method: enterprise valuation is equal to the discount of future cash flow to present value. This requires forecasting the future cash flow of enterprises and determining an appropriate discount rate. This method can consider the future development of the enterprise, but it is difficult to predict the future cash flow.

3. Asset method: Enterprise valuation is equal to asset value minus liabilities. Asset value includes fixed assets, intangible assets, inventory, etc. , and liabilities include corporate debts.

Factors to be considered in enterprise valuation:

1. Financial analysis: Before an enterprise is valued, it is necessary to make an in-depth analysis of its financial statements, including income statement, balance sheet and cash flow statement.

2. Industry status: consider the market size, growth trend, competition degree and other factors of the industry where the enterprise is located.

3. Growth evaluation: analyze the growth potential of the enterprise, including market share, new product development and market expansion strategy.

To sum up, enterprise valuation is a complex process, which requires comprehensive use of various valuation methods, combined with financial status, industry status, growth, risk and other factors.

Legal basis:

Company Law of the People's Republic of China

Article 27

Shareholders can make capital contributions in currency, or in kind, intellectual property rights, land use rights and other non-monetary properties that can be valued in currency and transferred according to law; However, except for the property that cannot be used as capital contribution as stipulated by laws and administrative regulations. Non-monetary property as capital contribution shall be evaluated and verified, and its value shall not be overestimated or underestimated. Where there are provisions in laws and administrative regulations on evaluation and pricing, those provisions shall prevail.

Article 125

The capital of a joint stock limited company is divided into shares, and the amount of each share is equal. The shares of the company take the form of shares. A stock is a certificate issued by a company to prove the shares held by shareholders.