The Application Of Value Analysis In Private Equity Investment In The Case Of Tianyun Company

The Chinese economic takes off in 21-century,with booming of financial market.A multi-level capital market is established by launching the small plates,the GEM and the new three board.Under such situation,the private equity investment industry,as an emerging force,plays an increasing crucial role in financing the reforms of the economic development and industrial structure adjustment of China.Therefore,accelerating the development of private equity investment industry is of significant importance.The key elementary of the private equity investment industry is the valuation of company.Due to the relatively late start,immature of the market structure and lack of sufficient data as well as in-depth research,our private equity industry is still following the foreign research skills and experience,lacking of originality and innovation.When the private equity analysts valuate the company,their theories and methods are still confusing and inaccurate because there is not a well-established valuation system.Under the “New Normal” phase of the Chinese economic development,the state encourages financial innovation to amplify the structure of the market,which will help to optimize the allocation of social resources.The carding of the company valuation is critical part of financial innovation.Based on above,this paper illuminates the background and significance of accurate valuation in private equity investment,summarizing the status quo of researching worldwide.This paper also discusses the relevant concepts,meaning and type of action of investment.This paper also gives a comprehensive comparison of the theories and methods of relative,fundamental and real-option valuations,discussing their typical features,applicability and calculation process.Then this paper will implement all kinds of appropriate valuation methods in the case of Tianyun Company,ltd.Finally,the paper will give a briefly conclusion of the research and try to outlook the further prospect.Based on the carding of the worldwide valuation methods,this paper will try to systematically analysis the current Chinese private equity valuation methods by application of a practical case as well as theory in order to provide a clear guidance purpose.