Application Of Imcome Approach In Asset Valuation

With the deepening of China’s reform and open policy and socialist market economy, M&A activity is booming. Creating a new peak on the number of M&A transactions and the amount in 2013. Asset pricing is the core issue of M&A, Asset Evaluation Agency is as an independent third-party intermediaries to provide the fair value for both sides.Income approach as one of the basic assessment methodology, considering the value of the assets being evaluated from the expected return, the acquirer also see the valve from this point. Therefore, scientific and rational using income method plays a decisive role in M&A asset pricing. This thesis analyzed the choice and using of income approach based on the Shenzhen Stock Exchange listed company M&A data in 2013, and expounding the existing problems in using income approach.Finally, this thesis put forward the six proposals of income approach, such as extending the detailed forecast period.