Analysis Of Enterprise Value Evaluation-in Case Of Belling Limited By Share Ltd

By the end of2013, Total market value of China’s A-shares quoted corporations has reached RMB27.5trillion. If plus the value of B-shares quoted corporations and non-quoted companies, this number will grow at least100%. No matter you are investors, managers, owners, or other stakeholders, to understand accurately the value of enterprise, driving factors of value, and how to make strategic management to improve the enterprise value, are very important. After the financial crisis, merger is the main method for China’s enterprises to become bigger and stronger. It’s happening everywhere that the company had paid for the extra premium but failed in operation, so correct assessment of enterprise value becomes the key point. In other behaviors like stock investment, enterprise management, equity transfer and so on, all these need to evaluate the enterprise value. The evaluation is becoming more and more important. Differences exist between China’s securities market, accounting standards and the foreign. The assessment of enterprise value in our country is not only simply to copy from the abroad, but also to adjust on the evaluation method. In this paper I focused on the particularity of the securities market and the accounting standards for enterprises in our country, combining the case of the Belling Company to select the appropriate method of enterprise value evaluation, and to adjust it. Firstly, I wrote the research background, purpose and significance, domestic and foreign literatures. Secondly, all kinds of enterprise value evaluation methods are discussed. Besides, I analyzed the Belling Company’s internal and external environment, the risks, and many financial indexes to provide the basis for the following predict. Finally, combined with the securities market in our country, financial criterions and the Belling Company’s special characteristics, I select the most suitable evaluation method to assess the enterprise value. Through the analysis of the case, we can deduce the evaluation methods of most enterprise value if its cash flow is above zero. This has a certain theoretical and practical significance to other evaluation of enterprise value.