The income method is to determine the value of the evaluated enterprise by capitalizing or discounting the expected income of the evaluated enterprise. The income method mainly adopts the present value technology, that is, the value of an asset is the present value of the future income that can be obtained by using the asset, and its discount rate reflects the risk return rate of investing in the asset and obtaining income. Income method is a mature and widely used valuation technology at present.
Market method is to compare the evaluated enterprise with reference enterprises, enterprises with existing trading cases in the market, shareholders' equity, securities and other equity assets to determine the value of the evaluated enterprise.
The cost method, also known as the asset-based method, is to determine the value of the assessed enterprise on the basis of reasonably evaluating the asset value and liabilities of the assessed enterprise.
M&A is a merger between enterprises. It is an act that an enterprise legal person obtains the property rights of other legal persons in a certain economic way on the basis of equality, voluntariness and equal compensation. It is also the main form of enterprise capital operation and management. Merger and acquisition of enterprises mainly includes three forms: company merger, asset acquisition and equity acquisition.
Enterprise value evaluation method:
Reasonable evaluation of the value of the target enterprise is one of the very important problems often encountered in the process of mergers and acquisitions and foreign investment. Appropriate evaluation method is the premise of accurate evaluation of enterprise value. This paper will analyze and summarize the basic principles, application scope and limitations of these methods around the core methods of enterprise value evaluation.