Comparison And Application Of The Method Of Companies Valuation

Firstly, discounted cash flow valuation method, economic value added valuation method and real option valuation method will be expatiated, and the advantage and disadvantage of which will be analyzed. Based on the analysis on these three valuation method, a new valuation method, integrated valuation method, will be brought forward. Integrated valuation method is a combination valuation method of DCF valuation method, EVA valuation method and real option valuation method. During this valuation process, the operation which can create stable profit for the company will be evaluated by DCF valuation method, and the operation which can create uncertain profit for the company will be evaluated by EVA valuation method, and the operation which is at researching stage will be evaluated by real option valuation method. The integrated valuation method is a flexible valuation method. During the valuation process, it is not necessary for every company to use those three valuation method at the same time. Then ZTE Corporation will be evaluated by integrated valuation method. The value of ZTE' stock calculated by integrated valuation method is close to the market value of ZTE' stock. So we will get the conclusion that integrated valuation method can evaluate relatively exactly the value of companies.