A Study On The Comparison Of The Valuation Method Of The Companies In The NEEQ

At the background of the increasingly developing NEEQ,this paper is based on the remarkable features of the NEEQ as well as the phenomenon of the mainly of relative valuation method in the market. This paper attached importance to analysis of applicability of the traditional valuation models and EVA model in evaluation of enterprise in the NEEQ, so that this paper can provide theoretical basis and practice guidelines when investors chooses evaluation model to evaluate enterprise in the NEEQ.According to the analysis of this paper,there are several features of enterprise in the NEEQ as following:Centralization of information technology and manufactural enterprises; The strength of advanced technology;Small-scale enterprises with strong profitability and capacity of growing;Tension on the financing side and high rate of debt ratio;High centralization of stock right.Based on these features,this paper showed a plenty of comparisons and analysis of the applicability of discounted-cash-flow method,relative valuation method,method of Economic Value Added and the option valuation method according to the features of the NEEQ as listed above. And it drew a conclusion that method of Economic Value Added is most befitting model for the enterprise in the NEEQ.Company’s free cash flow model is limited in evaluation of enterprises in the NEEQ. Entity of Free cash flow model has a bad adaptation in evaluation of enterprises in the NEEQ. Divident discount model and relative valuation method have the worst adaptation in evaluation of enterprises in the NEEQ. The option valuation method is a really strong supplement in evaluation of enterprises in the NEEQ.Based on the analysis as above,this paper pointed out that when someone need to evaluate the enterprise in the NEEQ,they should make a synthesis of applying multi-model,especially when evaluating some enterprises with significant patents and creative business model,they should use the option valuation method to evaluate it. And it will reflect the intrinsic value much more objectively and collectively.Finally,in specific cases,according to the instruction and analysis of the company,as well as the use of four valuation methods,this paper further proved the conclusions of comparisons of valuation methods above and the need for innovative business model’s valuation. Subsequently,this paper would give sincere advice and suggestion to manager of the market and investor.