2. Asset value basis: Asset value basis method refers to the method of evaluating the value of the target company by estimating its assets. The key to determine the asset value of the target company is to choose the appropriate asset evaluation value standard. 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. The assumption of book value is that the value of the enterprise is the sum of all investors who claim rights to the assets of the enterprise, including creditors and shareholders.
(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. Investors or acquirers mainly pay attention to the market value of enterprises.
(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. Assuming that the enterprise no longer operates, all liquidation value will not consider the possible future income of the enterprise.
3. P/E model: P/E model method is a method to determine the value of the target enterprise according to the income and P/E ratio of the target enterprise, which can also be called income method.
Legal basis:
Measures for the Administration of Acquisition of Listed Companies in People's Republic of China (PRC)
Article 2 The acquisition of listed companies and the related changes in equity of shares must abide by laws, administrative regulations and the provisions of China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission). The parties concerned shall be honest and trustworthy, abide by social morality and business ethics, consciously safeguard the order of the securities market, and accept the supervision of the government and the public.
Article 3 The acquisition of listed companies and the changes of relevant shares' rights and interests must follow the principles of openness, fairness and impartiality. The information disclosure obligor in the acquisition of a listed company and the change of relevant shares' rights and interests shall fully disclose their rights and interests in the listed company and their changes, and perform legal obligations such as reports and announcements in strict accordance with the law. Before the relevant information is made public, it is obliged to keep it confidential. The information reported and announced by the information disclosure obligor must be true, accurate and complete, and there shall be no false records, misleading statements or major omissions.