Research On Value Evaluation Of The Agricultural Listed Companies

Whether mergers and acquisitions, investment or cooperation, the enterprise must be carried out to assess the value of the enterprise before these acts occurred or it is based on the assessment as a decision-making. From the 1990's, China to try to assess the value of listed companies. To now, almost all listed companies were required to carry out the work, that is the enterprise value assessment.Enterprise Value Assessment theory originated in the early 20th century U.S. economist Irvine ? Fisher-Price (Irving Fisher) of the capital value theory. In 1906, Fisher-Price had published The Nature of Capital and Income," it discussed the relationship between capital and income and the value of the source of the problem. So as to assess the value of modern enterprises laid a theoretical foundation. The new corporate value assessment is continue to appear and gradually formed a complete theoretical system and method "toolbox." Enterprise Value assessment and cooperation between enterprises, it have some relationship with the wave of mergers and acquisitions, disclosure and other relevant information.In the theoretical level, enterprise value assessment should resolved the value of the source problem, where is the value of the business coming from? The differences between the great academic, some scholars believe that the enterprise value from the cost of enterprises, while the other believes that the proceeds from, and some that comes from the market and options. All this shows that the enterprise value assessment is based on the enterprise value of forms of assessment, rather than explore the real source of corporate value in the practical level, businesses must assess the methods to solve problems. The enterprise value of understanding the source of differentiation produced a method of differentiation. Accordingly there are produced cost, revenue, market, options law.There are some differences between agriculture business and commercial enterprises in the value or the form of expression in general industrial and vary. First of all, Agriculture is a significant outside industry. Agricultural enterprises is completing the physical reality and the value of output at the same time, output of the "environment", the environmental value of agricultural enterprises is an important component of the value; The Secondly, the agricultural land is in the fundamental and irreplaceable means of production, because of the special relationship between land ownership, making the land to rely on the specific rules of the system, then it can translate into business assets. In China, the market circulation of agricultural land have not yet taken shape, market-based agricultural land transactions is virtually non-existent. So, despite the area of agricultural enterprises have a lot of land, but it do not reflected in the agricultural enterprises account assets, not an agricultural enterprise's assets .Thirdly, the typical production target of agricultural enterprises -small agricultural flexible, high-risk, and the fully competitive market, and other characteristics. In a long-term, agricultural enterprises have no economic profit. Fourthly, agriculture is a policy-oriented industries, in agriculture-discrimination policy, the role of agriculture was offered for the remainder of the development of infant industries. In the agricultural protection policy, agriculture received from a large number of external transfer payments. Therefore, the policy is the formation of the value of agricultural enterprises.It is not inapplicable to use common value evaluation methods to use agriculture enterprises, which is suitable for common enterprises. That is because of uncompleted information, distempered market system and so on. And the more important is that all the methods are not fully reflect the headspring and value components of agriculture enterprises. Therefore, the value evaluation of agriculture enterprises should be innovated.In our country, the income method of enterprises value evaluation is considered to have strong adaptability. The paper uses this judgment to explore the adaptability that the income method evaluates the value of agriculture enterprises. It finds that the income flow of agriculture enterprises is the same as the common business enterprises in the value configuration. However, two important aspects of income headspring have been ignored which are environment value and policy value. Base on this judgment, the paper has available emendation to the income method and completed the part creation of evaluation method of the agriculture enterprise value assessment.The core of amendatory income method is that when agriculture enterprises compute the free cash flow, it adds policy finance and investment. The formulation is:Enterprises free cash flow = EBIT * (1 - tax rate) + depreciation - (capital expend + policy finance) - added working capital + policy investment.After got the enterprises free cash flow, the future value of enterprise will be discounted to the present value by the follow model.The amendatory income method evaluating agriculture enterprise value approximately combines the characters of the agriculture enterprises value assessment components. In the case analysis, the former enterprise value is RMB 18908528.1 thousand; the amendatory value is RMB 19002076.2 thousand.