Analysis On The Investment Value Of C Company

Currently,the global private equity is entering a new stage of development,and gradually become a strong force in the financial market.Private equity plays an important role in promoting the growth of enterprises,increasing the wealth of investors and optimizing the allocation of resources.However,due to the characteristics of poor liquidity,high risk,highly asymmetric information,long cycle and strong professionalism,there are still many problems.Among them,there are many disputes on the investment value analysis of target enterprises,especially the valuation part.For example,the unclear understanding of the use conditions and restrictions of various valuation methods,or some methods from foreign countries are not consistent with China’s economic environment and market environment,which will lead to the rigid application of investment methods in practice and the wrong conclusion,so that investors make uneconomic investment decisions,and then lead to the failure of investment.In view of the fact that the author has been working in the private equity fund for many years,based on the previous research results,this paper selects the actual investment case C company in the process of work to study its private equity investment value.The main research contents are as follows: firstly,this paper gives a brief overview of the enterprise value theory,equity value theory,private equity funds and other research literature,on this basis,introduces the discounted cash flow model,relative value model and their applicability;secondly,starting from the basic situation of C company,this paper expounds the historical evolution of C company At the same time,it analyzes the financial situation,industry situation and competitive advantage of company C.then,it systematically expounds the enterprise value of company C by using the P / E ratio and P / B ratio method in the discounted cash flow model and relative value evaluation model,and then expounds the enterprise value of company C by combining with the sensitivity analysis of net profit and the sensitivity analysis of net present value This paper describes the value of C company’s profitability;finally,according to the whole process of value evaluation,it draws the relevant conclusions of C company’s investment value analysis,including the core of the discounted cash flow method is to be able to more accurately predict the enterprise’s cash flow,the relative value evaluation model should be combined with the target company and comparable companies for qualitative analysis and index repair market.In addition,different valuation models should be used comprehensively,and the valuation models should be adjusted according to the industry situation,business model and financial indicators.So as to make the valuation range more reasonable.Through the analysis of C company’s investment value,it can provide a reference for its investors and managers in making market behavior decisions such as M & A and investment decisions for non listed companies.