The Theoretical And Applied Research On Income Method In Enterprice Value

China's enterprise value evaluation and assessment of physical assets are synchronized, but we use the general methord that is historical cost method, rather than using the income approach that is internationally accepted method. The income methord has been widely accepted in the international arena and is in a large number of applications. "guidance on assessment of corporate value" released in december 30, 2004, gave a positive guide for some problems existed in practice in the past few years, pointed out that the assessment industry and the community should not deny or avoid using the methord because of problems during the assessment process and should standardize the methord application on the basis of fully affirming the method can effectively reflect the overall profitability of enterprises.The main part of this article is divided into three parts: the first part reviewes the reserch on valuation theory at home , introduces the theoretical basis for the enterprise value evaluation,compares the market value and non-market value discusses the definition to come to an conclusion. The first part also analysis the disadvantages of cost methord and markets act, highlightes the advantages of income approach to do the following study on income approach . The second part is the proceeds of the enactment of law parameters, mainly discusses how to use the three parameters - revenue, the discount rate and earning periods in the enterprise value evaluation, how to adjust financial reports to get free cash flow in order to be able to calculate more accurate and reasonable economic returns; And also analysis how to determine a reasonable discount rate at our country's capital markets, and focuses on the problemes in the selection of risk-free rate as well as the risk premium in the capital asset pricing model; the earning periods is relatively easy to determine, but must pay attention to match it with the revene perods. The last part is application case study ,applying theory to practice.Overall, the enterprise value assessment at the field assessment of our country is still an emerging business, has not yet formed a complete system, but can be predicted that as China's market economy and the further development of enterprise value assessment will have a broad development space, enterprise value theory and method of assessment will be continuous innovated and improved.