Investment Analysis For Listed Companies

We often saw one company pay premium to merge another company in media platform.Actually,to enlarge market,reduce costs or be diversification,reduce risks.merging company in same industry or different industry is the most directly and effective way.So what’s the premium,how to calculate it?what’s the proper price for each other?what’s the baseline price?We know,their expected prices are not same,but the purchase price should be near the inner value of the company.All of them is the theroy of Corporate Valuation.In fact,Corporate Valuation can be a commodity caused by inverstiment and coporation merger.Corporate Valuation stems from the west,this theroy is very mature after development for 200 years.So far,three popular Corporate Valuation methods in the world,they are income method,cost method and market method.Income method is to predict company profit in the future,and discount it by a special rate for a special time,such as dcf and internal income approach.Cost method is based on balance sheet,calculate every property and debt for coporation value,such as replacement cost method.Market method refers to a similar corporation which was dealed in market recently,compared its value for itself valuation,such as priceearning ratio,merger and acquisition case comparison method.But China’s Corporate Valuation began at 1980’s,for now we focus on taking west experice for reference.As we know,every thing has in common,also has difference.Be different from west country’s economic system and state,we are public owned economy.So in this art,i analysis the enviroment of coporation in our country by a top-down method for their characteristics with FCFF and PE model.Then take TF company for an example for Corporate Valuation.