The Research On The Methods Of Objective Corporation Valuation In Merger & Acquisition Activity

With the continuing development in the market of property and the establishment of modern enterprise system, it becomes increasingly clear that in market economy, an enterprise, as merchandise producer, is also a kind of merchandise, which can be appraised and sold on market . The rapid development of modern capital market has greatly promoted the flow of enterprise resources among different owners. In recent years, the exchange of property such as merger and acquisition, enterprise reshuffles, stock dealings, risk investment is developing prosperously. The problem of corporate valuation is the one of core problems that decides whether the exchange of property can be accomplished.Understanding the valuation is the basis and precondition of all economic and managerial matters, so how to comprehend and appraise the corporate valuation is not only the responsibility of the assets appraiser but also the key problem which is worth close attention of investors, corporate management, investment consultant organization etc. Presently the research on the theory of corporate valuation is still in the primary stage. This article, with reference to fundamental theory and experience of corporate valuation, explores the basic theory and practical problem of corporate value, corporate valuation and correspondent methods, in order to establish a theory and method system as guidance to corporate valuation. The direct objective of corporate valuation is to evaluate a corporation. This paper gives an analysis on the three methods of corporate valuation, that is, discounted cash flows, market comparative method, assets valuation. Furthermore, it discusses their respective adaptability and limitation, and how to select a proper method to evaluate a corporation practically.