The Research Into Methods Of Valuation About Medium-And-Small Sized Enterprises

With the globalization of economy, the capital market of China is getting more international. Especially during recent years, the merges and shares exchanges have increased dramatically between Chinese companies and foreign capitals. The valuation of target enterprises is an important process during merging and the exchanges. In western developed countries, the related theories and methods are much more advanced than in China. And there are even few researches on the valuation of the un-listed small-and medium sized enterprises (SMEs). In fact, many of qualified SMEs are the targets of foreign capitals. Therefore, this thesis set the evaluation methods of SMEs as the theme of researching, and find out the proper value of these companies through case studies.From the prospect of basic theories on company evaluation, this thesis explains different ways from the source of the value of enterprise. Combined with the characters of Chinese SMEs, it reveals that the evaluation methods are also workable with some certain modifying in the details. This thesis also analyses two of the most popular evaluation methods that the discounted cash flow model and P/E radio model, with simplification and explanation on the models with two cases of Chinese SMEs. And it is ended with the conclusion of whole thesis and the forecasting of prospect.