A New Viewpoint Of Company Value-Appraisal Approach

Since 20 centuries, with merger covering all over the world continuously, the appraisal theories and methods of company value have gotten the quick development, and gradually became three basic approaches, namely assets foundation approach, income approach and market approach. Although these approaches have special features, they all exist different degree limits in science, rationality, possibility and practicability. In the paper I try to design a kind of new approach that includes science, rationality, possibilities and practicability. The approach is named four-factors analysis approach. In particular period, company's advantages & weaknesses coming from internal factors, and opportunities & threats coming from exterior factors, which form four factors to embody and affect company's comprehensive capability together. According to company's internal factors and exterior factors, I establish a series of targets, calculate each target's amount on company's internal and exterior information, and evaluate company's value on the standard being set in advance. For showing the approach, I take 10 samples from listed company, evaluate their value respectively on four factors analysis approach and three kinds of traditional approaches, and compare their value.The purpose for me to study lies in two parts: (1) Four-factors analysis approach can solve traditional approaches'limits, and raise science and rationality; (2) In four-factors analysis approach, company value being cast into four factors, can clearly display company value sources and risks and supply more practicability for people. It is advantageous to administrators in security market building up the split-off and stimulus system on company value, and creating a valid and harmonious security market. It is advantageous to company managers looking for company value in order to raise management efficiency. It is advantageous to investors discerning company value & risk and making investment plan reasonably.The main innovations of this paper are as follows: (1) It is first time to appraise company value with four-factors. Although factors has ever been applied to study some realms at home & abroad, it is first time in the paper that company value be cast into four-facotrs; (2) It is first time that internal & exterior factors be injected into company value system. Although some scholars present factors value viewpoint, it is first to evaluate company value with internal factors & exterior factors.The main viewpoints and conclusions: Four-factors analysis approach can correct traditional approaches'limits and clearly display company value and risk. Comparing with three traditional approaches, four-quadrants analysis approach owns stronger science, rationality, possibility and realistic practicability.