Evaluating The Value Of Educational Establishments In China

During these years,education industry has a rapid development.With corporate listing,enterprise merger and acquisition and transnational operation frequently,people pay more attention to the value evaluation of educational establishments.Based on the need of assessing the value of educational establishments,and the lack of theoretical research,this paper is to assess the value of educational establishments,offer the references for managers and investors,and provide advice for appraisers to choose the evaluation methods.This paper analyzes the defects in the common appraisal procedures,such as cost approach,income approach,market approach,when we assess the value of educational establishments.It is feasible to apply the Ohlson model in the value evaluation of educational establishments when we consider the feature of this kind of company.Then in the case study,we calculate the value of company selected,Shanghai Xin Nanyang Company Limited,and analyze the evaluation value at the period of 2011-2015.According to the research,we found that: Firstly,it's operable to apply the long-term trend method and the enterprise life cycle theory to determine the company's residual income.The methods can improve the accuracy of assessment.Secondly,according to the value of the Shanghai Xin Nanyang Company Limited in 2011-2015,we found that the evaluation value of the company in 2011-2015 showed a steady trend on the whole,the market performance was stable.In 2013 and 2014,the growth rate of the evaluation value is higher,and in other years,the growth rate is low.This study can make up for the deficiency in the field of educational establishments valuation.On the prediction of parameters,this paper applies the secular trend method and enterprise life cycle theory which can provide ideas for practice.