The Study On The Evaluation Of DY Environmental Engineering Company

DY Environmental Engineering Company is a hi-tech enterprise which provides solutions for industrial wastewater treatment,and its core business is heavy metal containing wastewater treatment.After a long time of hard work and accumulation,DY Environmental Engineering Company is planning to be listed on the "new three board",and transfer equity to solve the shortage of funds in the process of expansion.For the sake of the equity transfer,the first problem is to assess the value of DY Environmental Engineering Company.But DY environmental engineering company has a lot of characteristics which are significantly different from traditional companies,these factors make that the value of DY environmental engineering company is not only affected by financial factors,such as profit ability,debt paying ability and operating ability,but also influenced by non-financial factors largely,such as risk management ability,product competitiveness,research and innovation ability and status of human capital.So the value of DY environmental engineering company is more accurate in consideration of the non-financial factors.This article will make a study of the evaluation problems that DY environmental engineering company will face.Hope this study will do a great help as a reference for the equity transfer price,and provide the certain reference for the valuation of similar companies.The author looks up many related articles about evaluation and Balanced Score Card by domestic and abroad scholars,summarizes the accordingly theories of company evaluation and Balanced Score Card,and puts forward that the Balanced Score Card can be taken as a reference for the company evaluation.Secondly,the paper analyzes the limitations of the four traditional valuation methods(asset based method,income method,market method and option pricing method)for the evaluation of DY environmental engineering company,and proposes the applicability of the evaluation of DY environmental engineering company on the basis of Balanced Score Card.Then,it evaluates the stability of profit via analyzing the DY environmental engineering company management and financial situation,which makes a foundation to building the evaluation structure of DY environmental engineering company and predicting its cash flow.In the meantime,the author introduces the evaluation structure which includes financial factors and non-financial factors under the guidance of Balanced Score Card,and designs the concrete calculating process for the evaluation of DY environmental engineering company.According to the process,it calculates the influence coefficient of both financial factors and non-financial factors on DY environmental engineering company.Then on the basis of traditional income method,the influence coefficient shall be applied to modify the enterprise value.This article evaluates the comprehensive value of DY environmental engineering company at 2,496,944,755 yuan by using the system of Balanced Score Card,among which the value of DY environmental engineering company is 2,101,670,899 yuan guided by traditional income method.So the influence of non-financial factors on DY environmental engineering company value can not be ignored.From the process of evaluation,we can get the priorities of evaluation indexes of DY environmental engineering company.According to these evaluation indexes,DY environmental engineering company can rationally allocate limited resources to achieve optimal allocation of resources.