At present, there are four methods of enterprise value evaluation: asset value evaluation method, cash flow discount method, market comparison method and option value evaluation method.
1. Asset value evaluation method: Asset value evaluation method is a static evaluation method that uses the existing financial statement records of an enterprise to evaluate the assets of the enterprise separately and then summarize them, mainly including book value method and replacement cost method.
2. Book value method: Book value refers to the value or net value of shareholders' equity in the balance sheet, which is mainly composed of the capital invested by investors plus the operating profit of the enterprise. The calculation formula is: target enterprise value = target company's book net assets.
3. But this only measures the stock assets of the enterprise, and cannot reflect the profitability, growth ability and industry characteristics of the enterprise. In order to make up for this defect, in practice, the adjustment coefficient is often used to adjust the book value, which becomes: target enterprise value = target company's book net assets ×( 1+ adjustment coefficient).
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Enlightenment and key points of company value evaluation;
Ordinary investors usually use the relative valuation method to evaluate listed companies when investing in stocks. Relative valuation methods usually use indicators such as price-earnings ratio (the ratio of market price to earnings per share) or price-to-book ratio (the ratio of market price to net assets per share). When calculating price-earnings ratio or price-to-book ratio, financial indicators are mainly earnings per share and net assets per share.
Due to the change of accounting methods, the new standards can significantly change the earnings per share and net assets per share of listed companies, and investors may make buying or selling decisions based on these indicators, which may cause unnecessary losses. Therefore, investors must pay attention to the important changes in accounting methods under the new standards. In addition, investors need to remember:
1. Market leaders usually have higher valuations.
2. Most markets only have the boss, the second child and the third child, and others are insignificant.
3. There must be a growth plan to make the company's business go beyond the current state in order to maintain the valuation.
It is foolish to estimate the company value according to the creation (reproduction) cost. The real value lies in customers, income and growth prospects, not how much money the company spent when it was established.
Baidu encyclopedia-company valuation