Study On Assessing Value Of Public Company After Share Trading Reform

The share trading reform is a systematic innvoation for China's share market. It smashes the shackles on further opening, stably developing our capital market and paves the road to standardize China's capital market. It also produces significant influences on China's share market, reversing the aged malpractice on equity dissverance, solving the most thorny historic problem and laying foundation for institutional construction of China's share market.The stare trading reform institutionally solves problems on two tyes of share,two markets and two pricing mechanism and consolidate the base of common interests of public company's shareholders. The benefit of large sharholders is integrated with that of the listing company, the investors interrelate with operators of listing company in terms of benefit, the capital market is connected with the equity. The share market becomes the barometer of national economy.It is share trading reform that makes all the shares fully circulating. The shares ,regardless large or small shareholders, are priced through a common market, thus making it viable to build up a set of theory and system on fair and efficient value assessment for our share market. This paper conducts study on assessing value of listing company under background of share trading reform .This paper covers five parts. The 1^st part describes the background, purpose and significance of value assessment for public company, current status and difference on value assessment before and after share trading reform, study thinking and conent. The 2^nd part presents the theoritical base on investment value assessment, including definition, features and structures and internal, external factors impacting investment of public compny. The 3^rd part illustrates three assessing methodologies generally used at the moment, including methodology of cash flow, relative ratio and economic value added. The 4^th part gives a case study on assessing the value of a public company. The last part is to summarize the main idea of this paper.