Research On Enterprise Value Assessment Methods Based On Life Cycle Perspective

With the improvement and development of the capital market,the mergers and acquisitions,merging of enterprise,share transfer and other property rights trading activities more and more active?The buyer and the seller's market demand for enterprise value assessment are growing.The true value of the enterprise valuation can greatly promote the smooth completion of property rights transactions.Also,the standards of people's living and the level of education have great improvement,more and more mass society began to participate in stocks,funds,bonds and other securities investment.The turnover rate of the stock market especially high.What's more,the development of modern business' s goal has been changed from pursuit profit maximization to the pursuit of corporate value,enterprise's investment in the development of modern financial management and maximize the value of the enterprise caused by more and more operators attention.At last,we can see that the correct understanding of the corporate value and master the method of assessment the property rights transactions has great significance to securities investment and business management.This paper introduced the enterprise life cycle and discussed the value of assessment methods.Different life cycle stages of the enterprise have its own unique organizational structure,operational characteristics,and financial characteristics.Therefore,the value of the factors makes the enterprise be differences,only the enterprise placed in the corresponding life stage so that it can objectively evaluate its value.Different assessment methods also have their own assumptions,like calculation principles,advantages,and disadvantages.Every method cannot be thinking good or bad absolutely,only suitable or not.Therefore,the enterprise should select the appropriate assessment methods for specific circumstances.Finally,this paper combines the theory of life cycle and value assessment to study the value evaluation method that the enterprise should choose at different stages.To make the evaluation result more accurate and accurate,the paper provided some reference for the practical community.The full text of the use of three research methods:Firstly,using the literature research method.Through access to a variety of materials,journals,books,summarized the results that Chinese and Western scholars research in the life cycle and value assessment,the following analysis laid the theoretical foundation.Then using the comparative analysis method to analyze the different performance of the organizational structure,operation and finance in start-up period,growth period,maturity stage and recession period.Moreover,analyze the four value evaluation methods of income method,cost method,market law and option law and their calculation model,applicability.So as to sum up the valuation method suitable for each stage of development: the start-up enterprise application the option method to calculate the enterprise value;the growth period enterprise application economic profit discount method and the option method combined to assess the value of the enterprise.If the market can be found in comparable enterprises,so it can also use in the market method to evaluate.The maturity enterprise should calculate its value with the entity cash flow discount method,market profit law,and the book method;Recession enterprise should calculate its corporate liquidation value by the cost method.Finally,using the case study method,taking China Mobile as an example,this paper analyzes the cash flow of China Mobile in recent years and defines that the enterprise has been in the life cycle stage in the maturity period.It is most suitable for the use of income method and market law Value assessment.For maturity enterprise,the cost method and the options law are not applicable obviously,so this article does not calculate,the main using of the discount method and the market law to calculate its stock value.Then compare the results of the last day's base stock price and verify the valuation method whether applies the conclusion.