Research On Dynamic Discount Rate In The Brand Valuation Of Real Estate Enterprises

Since the twenty-first century, with the economic developed rapidly, the real estate industry went into the golden age. While the global economy is complicated increasingly, real estate industry is gradually stepped into a steady adjustment in order to adapt to the new normal economy of China, which lead to the increasingly fierce competition among enterprises. Smaller enterprise occupied overwhelming majority in real estate industry. The emerged phenomenon that the common of enterprises annexation, the emergence of real estate market segmentation and the introduction of light assets mode spur the higher requirements for the management and valuation of real estate enterprises’ brand assets put forward.Based on current brand evaluation models, this paper firstly reviews related theory on the research status of the real estate companies’ brand equity and brand valuation, then analysis each method disadvantages and advantages, in this way we find that the dynamic of discount rate isn’t reflected in the existing model or practical progress, which makes the brand valuation process can’t reflect the development of companies. Considering the reality that brand valuation result often used in financial transaction and as a reference during the brand management process, chose the income approach as the basic model and introduce the dynamic discount rate to improve the real estate brand evaluation model.In this paper, the discount rate has been divided into the risk-free return rate and risk return rate according to the definition, and make them as the dependent variable of time. The dynamic risk-free model is based on the theory of term structure of interest rate, Nelson-Siegel method was used in this process. Considering the difficulty of data acquisition, GM(1,1) method is used to predict the future changes of average return on equity of real estate industry. However, using the average index always ignore the characteristics of enterprises, in order to compensate for this weak, fuzzy analysis method is build to correct the risk return rate. Finally the real estate company’s brand integrated evaluation model was established. Through the empirical analysis of Gemdale Group, it affirms that the improved model is operable in practice.