Study On Business Valuation Method Of Listed Companies

The Growth Enterprises Market has established for more than4years.The featuresof the companies in the market is mainly of high-tech and high growth companies.TheGrowth Enterprises Market provides conveniences for the financing of small andmedium-sized enterprises,and has an important significance on the construction ofChinese multilevel capital market.High price earnings ratio, high issue price and thefunds raised are common phenomenon in the second-board market.For the PE multipliermethod,it difficult to find a suitable comparable companies.And the companies PE in thesecond-board market is high,so if select a comparable companies in the second-boardmarket,the PE method was used to estimate appear overvalued phenomenon.because onthe whole the market price earnings ratio PE is high, the growth enterprise market is hightoo. Discounted cash flow model tends to be perfect in theory, and this model is appliedto development company stable, a stable cash flow of the enterprise, The corporations inthe second-board market obviously does not meet this characteristic,and the discountedcash flow model does not consider the characteristics of the corporation in thesecond-board market, so using cash flow discounting model to estimate enterprise valueenterprise value is lower than the actual. This article introduces real option based ontraditional valuation methods, that is combine the real option model and the discountedcash flow model together.During the forecast period,using the discounted cash flowmodel to estimated value of existing enterprises,for the uncertainty and the flexibility touse real options method to assess the potential value, then added value of the potentialand the existing value to get the corporation value.The results show that, the new methodis superior to the traditional model to the companies in the second-board market.Itprovides a new thinking model for the valuation of the growth enterprise in thesecond-board market,and provides the scientific basis for the investment decisions ofinvestors.