The Applicability Of Valuation Ratio

Price multiplier method is one of the basic methods of relative valuation method,also is a kind of method is commonly used in enterprise value evaluation, it uses asimilar enterprise’s market pricing, and by choosing appropriate ratio of the value ofthe multiplier to estimate be evaluated enterprise (target) value of a method, alsoknown as the comparable transaction value method. Along with our country economicsystem reform gradually, between enterprise mergers, joint shareholding systemreform, property rights transactions such as deepening and longitudinal deepening andthe development trend of internationalization, price multiplier method for assessmentof enterprise value method is one of the important methods will be widely used,however, the price of multiplier method (comparable transaction value method) toevaluate enterprise value method is varied, including PE, PB, income multiplier,EV/EBIT (DA) multiplier method, etc., how to select the appropriate value ratiomultiplier became troubled most appraiser application market method whenevaluating the enterprise value of the problem.Different ratio of the value of the multiplier is representing different or the sameindustry or the same enterprise in different life cycle value driving factors, select theappropriate ratio of the value of the multiplier will inevitably be enterprise valueassessment in more recognized by the market’s assessment of the results, so this papermainly analyzes the application of marketing for enterprise value assessment valueratio the applicability of the multiplier and choose value ratio multiplier concreteapplication of the enterprise value assessment methods, and problems that should bepaid attention to using this method, etc, and with the various types of value ratiomultiplier as the research object, understand the basic meaning of multiplier valueratio, analyzes the value driving factors of the multiplier and influence factors, putsforward for the application market method can be used to evaluate the value ofenterprise value when choosing appropriate ratio multiplier, and try to give their ownon the basis of theoretical support and practical application.At the end of this article, in view of the above contents, trying to through theprocess of practice in the assessment of enterprise value of the value of the existingsimple correction ratio multiplier model, and enumerated case was proposed by applying the proportion and the method of empirical analysis on value selectionmethod of multiplier is analyzed and improved.