Study On Enterprise Value Evaluation

The modern enterprise value appraisal produced in the process of economictransformation in China, in the needs of state-owned assets management, which started latercompared with the developed countries. And in the process of development, most enterprisehad the problems of a greater proportion in non-business assets which is caused by historicalreasons. Therefore, there exist problems of using assets evaluation theory mechanically in theassessment of enterprise value. In this article, the data in the financial statements is used toset up the enterprise value evaluation model, combining with the whole value in financialinvestment market to carry on the analysis of the intrinsic value of the enterprise, so as todetermine the appropriate investment opportunity. It has important theoretical and practicalsignificance to the investors.First of all, it compares the respective principles, calculation methods and theadvantages and disadvantages of the three big enterprise value appraisal methods(approach,cost method and income method) which is recognized by the international, analyzes thecharacteristics and application scope of the three methods.Secondly, we can find the impact factors of the enterprise’s sustainable, stable growth,namely the core competitiveness of the enterprise through the comparison of five differententerprise growth types. And then we can use the potter’s five competitive forces model tocompare the management ability of the enterprise is good or bad in five aspects, including theentry into the barriers, competitive pressure, substitute degree, the ability of cutting down theprice to the buyers and the sellers.Thirdly, it makes the qualitative analysis to the impact of the enterprise value evaluationwhich is caused by the external environment factors and investor psychological behavior.Finally, it makes quantitative analysis to the enterprise value evaluation and finds out aconvenient, practical enterprise value analysis model by the examples and the establishmentof economic profits and discounted cash flow model.