Research Of TANDE'S Business Valuation

TANDE is a Chinese real estate company. This paper is about how to determine the Business value of TANDE in order to finance.2010 is the year of China's economic structural adjustment, the real estate industry come up against a great shock: The first half of year, the State Council and relevant departments will continue to implement the real estate market regulation which is made at the end of last year to curb housing prices in some cities. Continuous introduction of a series of policy measures to gradually increase the intensity of policy control.The second half of year, the state strengthen the regulation of the real estate market even further, major cities have introduced a policy to limit credit or the purchase of real estate, investment environment of real estate has become increasingly complex.Industrial policy, credit policy adjustment, making TANDE'S external financing source had a great impact. At present the major source of the company's revenue comes from sales of residential development projects, the real estate industry to adjust to the company's business has brought a certain pressure. Finance company became very pressing issue. To solve the financing problem, the first is the assessment of Business value.Based on the SWOT analysis of the company, I will explain the importance of business valuation, and then make a plan to assess the company's Business valuation and implement it. The following four methods will be used to assess the company's Business valuation:FCFF (Free Cash Flow for the Firm) model, EVA (Economic Value Added) model, Price Earning Radio, Price per Book Value. At the end of this article, I will evaluate the different results obtained and make choice of a suitable method of financing for TANDE.Overall, in this paper, I use the theory with practice and take reasonable theoretical tools to analyze and solve the problem of the company, not only as the company's financing and management of reference, but also for general business, the paper have great reference value. Different type of companies should select a different assessment of the theoretical model analysis. The results from the assessment can identify the root causes of business problems, and then, we will find solutions to the problem.