A Case Study Of Adjustment For Value Ratios In The Assessment Of Enterprise Value For MP Company

From the international point of view, there are three commonly accepted methods for assessing corporate value. Market approach is one of them. And it is often used.However,in comparison,market approach is not so common used in our country. The scope of application is not so big. The application of market approach to assess the value of the enterprise can most directly reflect the value attribute of the capital market. It provides fair price scales and price information to the underlying assets, listed companies' stock. With the rapid development and perfection of China's capital market and the continuous strengthening of international cooperation, the assessment system of our country will be in line with international standards, which will make the market approach be used widely in the enterprise value assessment. In the enterprise value assessment, the market approach is a method of simpler operation and less restrictive conditions. The assessment result obtained by the market approach is easy to be accepted of the various stakeholders. The value of the company being assesssed is equal to the value ratio multiplied by a certain relevant economic index. So we can also see that the value ratio is a very important factor.This article is based on specific assessment examples. And this article analyzes this case in detail. This article assessses the value of MP company in accordance with the steps of the market approach. Through the analysis of the development of snack food industry, combined with the analysis of the current situation of the company in the case,and by comparing the seven listed companies, this paper assesses the value of the company in this case with the revised EBIT value ratio, EBITDA value ratio, NOIAT value ratio. The value ratio of these three different profit margins can be taken into account the actual value of the company being assessed from the aspects of the income and expenses of the company being assessed and the amortization of depreciation.This paper describes that the market approach as one of the approaches of enterprise value assessment is feasible. The study of specific assessment cases helps to understand the announcements of market approach in specific applications. It examines the operability of the infrequently used value ratio in the assessment process. It makes up for the common value ratio such as price to earnings ratio, price to book value, price-to-sales of the inadequacies. It helps to promote the use of market approach in the future of enterprise value assessment practice. It enhances the scientific, validity and rationality of the application of market approach. Depth research and application of market approach can better assess the "Internet +" business, E-business enterprises and other emerging enterprises. In the new economic conditions, it can meet such enterprises mergers and acquisitions and related financing needs.