Research Of Software Enterprise Valuation Method Based On Residual Income Model

With the progress of the times and the development of science and technology, the global economy is having huge changes. The high-tech industry which makes the technology as the core is leading the new trend of the world economy development. The software industry which occupies the important share in a high-tech industry has caused more and more attention. In the21century, people demand for hi-tech products are more and more whether in life or in the work. At the same time the national government also have issued a series of strong policies to promote the development of the software industry, which provide powerful help for the rapid development of the software industry. Now more and more investors have already turned their eyes to the software industry, which is different from traditional enterprise. How to estimate the value of software enterprise has become the attention what investors and managers focus.Software enterprise take intangible assets such as core technology, software products and patent as main assets, which have characteristics of high intelligence, high risk, high investment, high competition and others, while traditional enterprise which include real estate industries and manufacturing industry take tangible assets as the main assets. This makes difference with software enterprise value appraisal and the traditional enterprise value evaluation. The traditional evaluation method is not applicable for software enterprise value evaluation, so we need choose more suitable value appraisal method for software enterprise according to the characteristics of software enterprise. At present, Chinese research about enterprise assessment value is still in the experimental stage, and research about high-tech enterprise evaluation is more little. How to choose the correct evaluation method for software enterprise value evaluation has become a key issue. Based on these, this article puts forward the enterprise valuation method based on residual income model that emphasis on true evaluation of enterprise through analysising the existing value evaluation method and the characteristics of the software enterprise. This method introduces scientifically objective financial index so that it has better ability of operation, at same time it considers the characteristic of development in software company which makes the method have practical significance. This paper uses the method which combines theory discussion and case analysis to discuss the technique based on the residual income model. Hope to provide a certain degree of reference to research in valuing enterprise evaluation.