The discount rate is one of the important parameters when using the present value of earnings method to evaluate the value of a company. Slight differences in the discount rate will lead to great differences in the evaluation results. There are three methods to calculate the discount. Rate:
Accumulation method.
The accumulation method is the most commonly used method in determining the discount rate. Generally speaking, the discount rate should include the risk-free rate of return, the risk-return rate and the inflation rate. The risk-free rate of return refers to the profit level of an asset under general conditions; the risk-free rate of return refers to the ratio of the reward obtained by taking risks to the asset.
For non-loss-making industries, the overall enterprise's future income can be predicted based on future after-tax net profit or net cash flow. The discount rate can be based on the industry's average capital profit rate, plus 3-5 to determine the risk rate. Unless there is conclusive evidence of high risk, the discount rate is generally not higher than 15.
The calculation formula of the accumulation method is as follows: discount rate = risk-free profit rate, risk profit rate, inflation rate; where: risk return rate = industry risk, operating risk, financial risk.
Market comparison method.
The market comparison method refers to selecting asset cases of the same type or similar industry or similar scale as the evaluation object, and calculating their respective risk-reward rates or discount rates. After analysis and adjustment, based on different weights It is a method of correcting the number, eliminating the influence of special factors, and comprehensively calculating the discount rate of the object being evaluated.
The first is to invite 3-5 managers to determine the position of the evaluated project in the industry. If these people have similar opinions, a reasonable estimate of the company's risk of the evaluated project can be obtained.
The second is to invite 3-5 managers to determine which listed companies are the most similar competitors to the enterprise being evaluated, and then determine the risk value of the enterprise being evaluated based on the risk values ??of these companies that are assumed to have the same risks. Corporate risk.
Social average rate of return method.
The social average rate of return method determines the discount rate or principalization rate by analyzing changes in the social average asset rate of return. Using this method can objectively reflect the present value of income from the overall assets of the enterprise.
However, the coefficient of variation and risk coefficient are generally not easy to measure. The above method is applied to the determination of the discount rate in enterprise value evaluation, which can be expressed as: discount rate = risk-free rate of return (social average return on assets - risk-free rate of return) * risk coefficient. :
The discount rate is the rate of return under specific conditions, indicating the rate of return of the asset to obtain this income. Under the condition of a certain income, the higher the rate of return, it means that the appreciation rate of unit assets is high and the value of the assets owned by the owner is low. Therefore, the higher the rate of return, the lower the assessed value of the assets.
Reference: Baidu Encyclopedia? Discount rate