Study On The Equity Value Evaluation Of Shanxi Trucks Use Natural Gas Group Co.,LTD

Shanxi trucks use natural gas group co.,LTD belongs to Shanxi Auto Transport Group Co.,LTD.The company faces many problems such as shortage of funds and imperfect management.Under the background of mixed ownership reform,Shanxi trucks use natural gas group co.,LTD needs to raise development funds through equity transfer.The evaluation of equity value has become one of the key issues in the management of Shanxi trucks use natural gas group co.,LTD.The paper reviews the relevant literature at home and abroad.According to the relevant theories and methods of value evaluation and the relevant provisions of stateowned assets evaluation,the paper combines closely with the reality of Shanxi trucks use natural gas group co.,LTD,and chooses the income method and the asset-based method as its equity valuation methods.Then the paper uses cash flow discounting model and asset-based method to evaluate the equity value of Shanxi trucks use natural gas group co.,LTD.The result of equity valuation based on income method is 71.57 million yuan.Compared with the book value of the company’s equity,the appreciation ratio of assessment is 149.10%.The asset-based method is 23.38 million yuan,the value-added amount is-5.37 million yuan,and the appreciation rate is-18.69%.Finally,the paper analyzes the reasons for the difference in the equity value assessment between the income method and the asset-based method,and proposes the use of the evaluation results.The paper can provide reference for other enterprises in the selection of equity valuation methods and the determination of discount rate in cash flow discount model.It can also provide a basis for the determination of equity transfer price in the mixed ownership reform of Shanxi trucks use natural gas group co.,LTD.