The Evaluation Of GEM Listed Companies

The Growth Enterprise Market(GEM)opening only seventh years,but the development momentum of the market cannot be ignored.But risks and benefits is proportional to the relationship,when The Growth Enterprise Market is so prosperous,ought to worry about it because of the crisis.So it is very meaningful to study how to correctly evaluate the enterprise value of the GEM listed enterprise.Firstly,this paper analyzes the characteristics of the enterprises on the GEM.Through the analysis above,this paper made a conclusion that the GEM market has the characteristics of short profit time,large proportion of intangible assets,high risk,high growth and high profitability.Then this article analyzes the applicability of market approach,income approach,and cost approach,real options approach.Through the analysis above,this paper made a conclusion that none of the four methods are very suitable for the valuation of the listed enterprises on the GEM.In order to construct a suitable enterprise valuation model,combined with scholars for the definition of enterprise value,the value of the listed enterprises on the GEM is mainly composed of two parts;one part is the value of the actual assets which have stable profitability,another part is the added value which created by the future investment opportunities.According to the actual situation of the listed companies on the GEM,this paper chooses cash flow method to value the actual assets,and chooses real options approach to value the added value.And in the construction of the evaluation model,this paper focuses on the application of the gray forecasting model in cash flow forecast and volatility forecast.Lastly,taking Shenzhen infogem technologies Co.,Ltd as an example to prove the evaluation method which this paper chooses is feasible.Through this study,this paper draws the following conclusion: According to the characteristics of listed enterprises on the GEM,the value of these enterprises should be used in combination with cash flow method and real options approach.In the calculation of future cash flow forecast and volatility forecast,the error of the gray forecasting model is within the controllable range,so it is valid.