Case Studies On The Application Of Market Valuation Method Based On Company B

Market approach is an assessment methodology to assess the value of the valuation system of the most close to the market value. Despite the current market approach and application of research in our country it is not widespread, but did not deny its importance in valuation practice. With the rapid development of China's capital market and to improve, more and more across the exchanges, China's market value assessment system will with international standards, so the future market approach in our assessment practice will have a very broad application.I combine the actual situation of the company B, for specific cases demonstrated the operation of the market was assessed. In valuing method when using market, how to choose comparable high reference firms and determine the appropriate value of the multiplier and reasonable amendments, it is a key factor in relation to the evaluation results accuracy. By analyzing the target company's ability to generate profits, asset quality and operating conditions to determine the measure of reference companies and comparable indicators objective enterprise, by giving different weights of each index weight, and ultimately determined by reference to enterprise comprehensive score. When you select this paper, in addition to select a common value ratio price-earnings ratio multiplier, but also the company's assets combined with B status, business operation, expanding the EBIT, EBITDA multiplier value of two to assess the target company, to maximize the elimination of the capital structure, impact on business risk assessment results to bring. Final results of the assessment by three caliber reasonable average equity value of B company.Assessment findings and professional organizations shows that the market is basically the same method in our country already has an application basis. Market Approach assessment process demonstrated in this article illustrates the market approach in assessing the practical operability, paving the way for the future of the market is widely used in the method of valuation.