Research On The Improvement Of Market Law In Enterprise Value Assessment

With an attempt to solve the issue of Market Approach in Business Valuation,an amendment is proposed to improve the Guideline Public Company Method based on the value assessment theory of enterprise in Market Approach and the management if its current situation.The study adopts principal component analysis to conduct the case study and then calculate company's overall scores,and the sample data come from the public company whose business is same to these appraised companies'.The subjects of the study refer to the Financial Indicators on the capability of profitability,growth,operation and debt-paying.The comparable companies are selected according to the final comprehensive scores,and the subjects of the study are comparable companies whose overall scores are approximate to those appraised companies.Meanwhile,by using principal component regression analysis in which we take the MVIC for the dependent variables,the Corresponding Parameter of Enterprise's rate multiplier for the independent factor(which includes net profit,book value of net assets,prime operating revenue,EBITDA),multivariate repression model can be developed from the Linear Independent Factor extracted from that method.According to the Linear repression analysis,the study also analyzes and weighs the influence of every mainly valuation parameter on the economy's value.Based on this repression results,multiplier model can be constructed and the corresponding weight of every rate multiplier can be defined.Then the weighted average method is also adopted to determine the Enterprise's marketing value.In specific case analysis,this paper sets electricity in industry as an example to introduce the whole process of setting models.As for the sample sources,37 enterprises whose business is mainly in heat-engine are selected as the data sources of Empirical Analysis on the basis of CSRC's Industry Classification Standard of Chinese Listed Companies.In the study,the factors of stock liquidity and Holding Right Premium and Discounts are not taken into consideration.