1, posting cash flow. In other words, the highest acceptable discount rate (or cost of capital) is determined by the discounted cash flow method.
2. Asset value basis. Asset value-based method refers to the method of evaluating the value of the target company by estimating its assets.
At present, there are three main international standards for asset appraisal:
(1) Book value refers to the asset value listed on the company's balance sheet.
(2) Market value refers to the price acceptable to both buyers and sellers after bidding in the market.
The market value of a company refers to its stock price.
(3) liquidation value refers to the realizable value of the assets of the target enterprise after liquidation and sale, and the target enterprise no longer exists after merger and acquisition.
3. Price-earnings ratio model. The price-earnings ratio model is a method to determine the value of the target enterprise according to its income and price-earnings ratio. P/E ratio, which may indicate the future level of stock returns of enterprises, the returns investors hope to get from stocks when investing in enterprises, the expected returns of enterprises' investment, and the length of time for enterprises to get returns from investment that exceed the requirements of investors.
legal ground
Article 5 of the Measures for the Administration of the Acquisition of Listed Companies
The purchaser can become the controlling shareholder of the listed company by purchasing shares, become the actual controller of the listed company through investment relations, agreements and other arrangements, or obtain the control right of the listed company through the above methods and means at the same time. Buyers include investors and others acting in concert with them.