Research On The Methods And Application Of The Enterprise Valuation

With gradually globalization of economy,merger enterprise restructure ,firm cooperation, joint venture etc,all the activities involved in business valuation. How to give price to the whole of the corporate has been an important issue. Enterprise finical objective has transferred from maximization of Profit to maximization of enterprise value. business valuation has become core issue of the enterprise management.Business valuation also called corporation valuation. taking the enterprise as a whole. evaluates its value for exchanging in the future. It is abided by the Principle of maximization of enterprise value business strategy selection and asset appraisal will develop toward it. This article, with reference to fundamental theory and experience of corporate valuation, explores the basic theory and practical problem of corporate value, corporate valuation and correspondent methods, in order to establish a theory and method system as guidance to corporate valuation. corporate valuation is to evaluate a corporation. This paper gives an analysis on the three methods of corporate valuation, that is, discounted cash flows,market comparative method, economic value added and option model. Furthermore, it discusses their respective adaptability and limitation.We have decisions on china corporate valuation, which about choose the parameter, change the model to obey the china practice. Based on the analysis on these valuation methods, a new valuation method, integrated valuation method, will be brought forward——Integrated valuation methodIntegrated valuation method is a combination valuation method of DCF valuation method, EVA valuation method and real option valuation method.During this valuation process, the operation which can create stable profit for the company will be evaluated by DCF valuation method, and the operation which can create uncertain profit for the company will be evaluated by EVA valuation method, and the operation which is at researching stage will be evaluated by option valuation method. The integrated valuation method is a flexible valuation method. During the valuation process, it is not necessary for every company to use those three valuation method at the same time. The value of Fangzheng's stock calculated by integrated valuation method is close to the market value of Fangzheng' stock. So we will get the conclusion that integrated valuation method can evaluate relatively exactly the value of companies.