Forestry Enterprise Value Assessment

Enterprise value assessment and evaluation of forest value are the most popular topics of thecurrent assets evaluation theory and practice. There are few documents on the cross-cutting areasof the business of the two assessments and the forestry enterprise value evaluation and research.The choice of this paper is from perspective which is not yet noticed. Forestry enterprisevalue assessment has not been fully attention, but its potential value is unlimited. Thecommencement of this study hopes to help with the forestry business stakeholders to have a morecomprehensive and accurate understanding of the value of the forestry enterprise: help forestrycompanies a reasonable assessment of the value of their own businesses, use the stock market toachieve financing; advocates a philosophy of value investment, help investors know the forestryenterprise investment value. Social emphasis on green low-carbon industries and major reformon forest right system actually have provided a broad practical space.The study of this paper, based on the perspective of accounting information, begins with theanalysis of public accounting information from China's Shanghai and Shenzhen listed forestrycompanies, to the cognitive value of forestry enterprises. The key point of solving the assessmentis the choice of assessment model. Angle from the corporate valuation model the use ofaccounting information, this paper studied the applicability of the enterprise value evaluationmodel and concluded that the enterprise in the formative years is more appropriate to use residualincome model, analyzing the Industrial Zhongfu for the case. Further research around how toexpand the use of residual income model to assess the value of forestry enterprises, and listingthe two difficulties on the residual income model to assess the value of China's forestryenterprises: First, forestry adopt the policy limit cutting a direct impact on the release of theactual profits of the enterprise; China's enterprises assets using a larger proportion of historicalcost. In response to these difficulties, this paper introduces a leverage effect on the residualincome model be amended, and try an alternative method measured at fair value of forest assets.To the smooth realization of the case company's enterprise value assessment obtained during theassessment of the value range. The actual transaction data through the combination of thesecurities market from the side to verify the reasonableness of the conclusions of the assessment.