High-tech Listed Company Valuation

Along with the deepening of reform and opening up, China's accession to the WTO and GEM's opening, a wide range of asset valuation trend are already visible, especially in the context of in which the venture capital world is developing rapidly and High-tech Listed Companies have sprung up everywhere into the 21st century. Facing a large number of High-tech Listed Companies of China's, we find out it is different from some traditional industries. We also have to marvel indeed that the era of intellectual property and intangible assets has come. The era of High-tech Listed Companies valuation has come and the original assessment methods have been unable to meet the need of High-tech Listed Companies value assessment. Furthermore, the value assessment not only meets the need of economic activity, but meets the needs of management and operational decision-making, which makes the valuation of High-tech Listed Companies than ever are more important.It is precisely because of this need, this article will apply value assessment methods, in particular the discounted multi-stage free cash flow model to high-tech listed companies. This paper argues that multi-stage discounted cash flow model takes into account both the characteristics of high-tech companies, but also the time value of money .In this paper, based on Hengtong Photoelectric financial reports over the years ,we carry out Hengtong Photoelectric's valuation by a multi-stage discounted cash flow model.This paper is divided into six chapters. The first points out the background and the significance , summarizes main research content and introduces the aims and methods of the study of the paper. The second chapter defines the concept of enterprise value assessment and the research situation at home and abroad. The third chapter describes the related concepts of High-tech Listed Companies value assessment as well as the applicability of the applications of evaluation methods in High-tech Listed Companies .The fourth introduces multi-stage discounted cash flow model and describes in detail the principle and steps and models of this method and integrates theory with practice in order to take Hengtong Photoelectric Company as an example. This paper comes to conclusions as follow .This paper argues that with development of China's capital market and further improvement of accounting disclosure requirements, free cash flow valuation approach will be widely used.