Research On Value Assessment And Pricing Of The Chemical Enterprises

With the development of market economy,value assessment has been widely used in transaction pricing,investment decision-making,financial management,and other fields.And it is of great significance to promote the social resources to circulate and standardize the market price system so that make the development of economy healthy and rapidly.The rationality of the valuation results is the key point to enterprises value assessment.Therefore,we need to consider that the type of value,the assessment methods,the influence of pricing and the results of assessment.Based on chemical enterprises,this paper studied the assessment methods and the characteristics of the chemical industry.Taking Zhejiang Satellite Petrochemical company as an example,this paper emphatically analyzed the two methods--the Free Cash Flow To Firm model and the Free Cash Flow To Equity model.And it concluded the rationality of the application to value assessment methods in chemical enterprises.Firstly,we introduced the theoretical basis of enterprises value assessment and pricing.Through the comparative analysis of the main methods,this paper discussed the feasibility of various kinds of evaluation methods applied in chemical enterprises.Secondly this paper briefly introduced the case of satellite petrochemical company,and its core competitiveness,as well as analyzing the operating income and forecasting it.Then we deeply dissected the case enterprise value through FCFF model and analyzed contrastively FCFE model,so we verified the feasibility of the two models to pricing in chemical industry.Some suggestions are provided for the investors through analyzing the pricing influence of the case enterprise,so as to get the feasible assessment methods and pricing suggestions for chemical enterprises.In addition,we made a variation analysis from the two evaluation results of the case company through relative valuation method.Finally,we came to a conclusion to get enlightened,and to provide the feasible evaluation methods and pricing proposals for chemical enterprises.The innovation of this paper is that pertinent and specific analysis to the chemical industry,and the study of value evaluation methods and the feasibility of models application for chemical enterprises.We calculated and analyzed the five-year data of the case company by applying the FCFF model,the FCFE model and the relative valuation method.Then we get the five-years assessment results.We analyzed the contrastively assessment results with the five-years average share prices to verify whether there is significant difference through T-test and Wilcox rank sum test.And we got the applicable value assessments and pricing method in chemical industry to provide pricing suggestions for investors.