Research For The Methods Of Assessing The Relative-Value Of The Equity Of The Non-Listed Company

Mostly, the traditional evaluation method is the income capitalization approach, which used to calculate the present value of the asset through the appropriate discount rate. The method acquires to take into account of the operating conditions, the risk of future earnings, and the predicting future earnings of company’s portfolio, in order to evaluate the free-cash-flow-of-equity of the company. On the other hand, the relative-value method is based on the comparing of the un-listed company’s earnings multiple, Price to book ratio, enterprise multiples, and the ratio of the company’s book value to the market value with the comparable listed company to determine the relative-value. However, in the real world, the financial markets have a certain degree of friction which makes the equity-valuation with the high selection costs, and can be manipulated subjectively by the experience of the evaluator. How to remove the excessive subjective factors and how to solve the low accuracy problem existing in the evaluation the relative-value of the equity are the purpose and significance of this paper.In this paper, the dynamic relationship between the growth rate of the annual funding hold by the company and it’s risk asset growth rate should be first analyzed so as to find the behave of the firm in the long-run. And, followed by the low-degree of the financial market liquidity assumption and the high possibility of the company to meet the risk compensation, the stability of the portfolio of the company which derived form maximizing the expected return of the portfolio will be observed under the assumption of the convex financial market. Taking these two in to account, we can deduce the equity-cash-flow evaluation indexes.Secondly, the paper also analyzes the intangible economic value of the company by building an optimization model. The valuation indexes of the enterprise’s intangible economic value are built then.At last, methods of assessing the equity relative-value of the non-listed company based on grey theory needs to combine the fuzzy and the gray theory with the characteristics of equity valuation to construct a gray fuzzy comprehensive evaluation model for the relative-value valuation which can be considered as a highly accurate valuation method for the subjective factors involved in the valuation are much less.