Application And Development Of Listed Company Comparison Method

Enterprise valuation has become a hot topic in asset appraisal profession in recentyears, and with the gradual progress of China’s economic reform, mergers,alliances,joint-stock reform, property rights transactions between enterprises inevitably shows thedepth and internationalization trends. In addition, China Appraisal Society promulgatedand implemented the "Valuation Standards--enterprise value" criterion In2012July.One of the important methods the market approach valuation method is bound to get awide range of applications. In this paper, the specific case, demonstrates a marketapproach in assessment practice, trying to further solve the problem in the theory andpractice.This paper uses the method of combining theory analysis and case analysis, the basictheory of market approach method and its problems in practice to do some usefulexploration and analysis. Based on2012new rule of the assets assessment criteria,"Valuation Standards--enterprise value" as the background. First, the old and the newguidelines on enterprise valuation comparison market approach, elaborated from thedifferent aspects of the new guidelines on the improvement of the market approach andmeaning, which leads article to study the market approach. Second, in this paper, theevaluation principle of the market approach, the premise of application market approachare analyzed and expounded. Again, this article introduces basic ideas and specificapplication procedures of the market approach to evaluate enterprise value which oftenused the two methods of listed company comparison method and trading casescomparison method, then Comparison and analysis of two commonly used methods, soas to identify in this paper, we study the listed company comparison method. Finally, thearticle describes the listed company comparison method need to be addressed in theapplication of two key parameters, comparable company and value multiplier.This paper from the listed company comparison method in the specific situation inour country application system analysis and in-depth study it. Overall, the listedcompany comparison method as a convenient, compelling, low-cost enterpriseevaluation method, and equity markets in China’s securities market development in thegradual improvement has been applied. However, in specific applications, due to lack of effectiveness of the domestic capital market and the market approach itself, thesubjective judgment of the market approach and other factors making it more specificapplications also exist in this or that problem. In the fourth chapter of the specificapplication listed company comparison method are described, for three typical modelsin practice using of their advantages and limitations are analysis in detail.With DQ group as an example, this article introduces in detail using the new methodto DQ group enterprise value assessment process, and analyzes the result difference.Finally, there is a summary of this article, and the innovation points and deficiencies inthe article.