Study On The Application Of Enterprise Evaluation In IPO Pricing Of China

Enterprise valuation provides a scientific and reasonable measure of value for enterprise stock, so it is very important for IPO pricing. The valuation industry in China is very young, which lead to its weakness in theory and practice. Moreover, the system in Chinese stock market is far from maturity, such as the long-run government pricing system. All these factor result in the deviation between stock price and its value, which lead to the little use of the value evaluation in IPO stock pricing. After analyzing files of information, the author find that there are many urgent problems in the use of value evaluation in IPO pricing, so I did system analysis about the issue with demonstration test and comparative study. The main content is as follows:The paper did system analysis about the exiting value evaluation method and the correlative theory. Based on firm life circle, the firm value composing in different development phase and the certainty structure of industry, I did profound analysis about the applicability range of evaluation methods and its applicability to IPO pricing and deficiency.The paper statistics the use frequency and evaluation efficiency of evaluation method used in IPO. Through analysis the different between evaluation and offering price, which means the application efficiency of evaluation, we find the impact factors of the discount rate made by the issuer and main underwriter, which are also the under-pricing factors existing in stock primary market.Since there is deficiency with the existing evaluation method, the paper did some improvement on the present evaluation model. The paper put forward an IPO evaluation model which meet Chinese stock feature based on the multiple statistical technology, and the forecast result of the left sample with the multiple regression analysis shows the model is feasible in Chinese stock market.