How to determine the equity value

The determination of equity value can be achieved through equity evaluation. Equity evaluation refers to the evaluation of the value of enterprise equity to determine the actual value of enterprise equity in the market.

Equity valuation can be carried out by various methods, including market comparison method, income method and cost method. Among them, the market comparison method mainly refers to the transaction price of similar enterprises in the market to calculate the value of enterprise equity; The income method mainly calculates the value of enterprise equity through the future profitability and cash flow of the enterprise; The cost rule is to estimate the actual value of enterprise's rights and interests by evaluating the assets and liabilities of the enterprise.

In the process of equity valuation, the factors that need to be considered include the operating conditions of enterprises, industry prospects, market demand, competition and other factors, as well as relevant policies and regulations. At the same time, it is necessary to consider the purpose, time and method of equity transfer in order to evaluate the actual value of equity more accurately.

If you have any questions related to the evaluation, you can click on your avatar to ask questions or find a third party in Zhenglian Jiang Kun for evaluation and consultation.