A Study On The Enterprise Value Assessmentand Value Deviation Of ST Companies

In a mature, healthy and rational market, the stock price should be highly correlated with the value of the company, which should timely reflect the change of value, and fluctuate around the value, but not deflect from its value for a long time.However, since China’s securities emerged, it has produced endless problems. There exists an obvious phenomenon that the stock price is seriously departure from the value of the company the market even is considered a "typical" speculative market. As a special group in the stock market, the ST companies always face the huge management risk and financial risk. All the data of these ST companies are in the extreme negative state. And in our country, because of the scarcity of resources of listed companies and the concept of shell resources and economic value, the ST companies can obtain good assets and make the enterprise a new life by assets and reorganization, major asset sales.A lot of backdoor listing is the best description of the phenomenon. As the Traditional valuation methods are based on many strict assumptions and give more consideration to the financial information, they are difficult to assess the ST companies’ true value.Therefore, to determine the evaluation method of ST enterprise” value is great significant to guarantee the objectivity and fair of the capital market. In addition, we can find a strange phenomenon through the statistics that these ST companies may temporarily or carrying on continued losses, but its stock price is very high and seriously deviate from its true value. The ST segment is overestimated for a long time,so Looking for the overrated reason is of great significance corporate governance and investor protection.The purpose of this article aims at trying to determine ST enterprises assessment methods and deriving its intrinsic value on the base of a comparative analysis of valuation methods, combining with financial characteristics and the survival and development of enterprises ST features. And then, we can identify the factors whichaffect the enterprise value of the deviation by comparing ST corporate intrinsic value with its market value. Based on the analysis of investor behavior and psychology, we summarize the relevant research literature, propose three hypotheses and analyze the above-mentioned problems. Finally, we find ST corporate financial risk; operational risk and corporate restructuring activities will affect the value of the deviation, In addition,other factors, including firm size, total asset turnover and so on.To solve these problems, the paper concludes with the following suggestions. For example, We should strengthen the Real Option Theory in the assessment practice field,Enterprises should grasp the psychological and investor reaction to some extent of the information capital operation, Investors should fully understand the intrinsic value of the business, and rational invest, Furthermore, it should strengthen the supervision of the ST segment.