A Study On The Evaluation Of Goodwill Value Of XX Enterprise Based On Improved Excess Earnings Method

How to correctly assess the value of goodwill in today's competitive business is of great significance.There are two traditional methods for evaluating the value of goodwill: margin method and excess return method,which are the most commonly used methods in the evaluation of actual goodwill,but each has its own defects.The method of margin assessment will involve the inconsistency of various asset evaluation methods,and there are subjective factors in the method of excess income in predicting enterprise income.Fair value of goodwill can enable enterprises to make the right business decisions,but also a good measure of corporate performance.However,due to the late development of China's asset appraisal industry,the valuation of goodwill is still the current asset appraisers' major topic.Reasonable evaluation of goodwill value not only has theoretical significance,but also has certain practical significance.?A reasonable evaluation of the value of goodwill is beneficial to both M & A enterprises,the evaluated enterprises can get the relative fair value compensation,and the M & A enterprises do not have to worry about the improper price of M & A;? A reasonable evaluation of the value of goodwill is conducive to the objective evaluation of their own value;?A reasonable evaluation of the value of goodwill can optimize the market economic environment.Taking the goodwill value of XX appliance enterprise as an example,this paper evaluates its goodwill value through the traditional excess income method.The traditional method uses the least square method to used to predict the operating income of XX appliance enterprise and household appliance industry,and the moving average method is used to predict the cost and income of XX appliance enterprise.Then the traditional method of excess income is improved,and the financial indexes are decomposed by DuPont analysis,and then these indexes are advanced by grey prediction series model At last,the discount rate is used to discount the excess income of the modified forecast,and the goodwill value obtained by XX Enterprise after the improved method is obtained.By comparing the traditional excess income method with the improved excess income method,excess income method can avoid the subjective factors when the traditional excess income method predicts the excess income to a certain extent,at the same time,it can follow the nature of the historical data well,improve the simulation accuracy of the fluctuation data,and thus show the fair value of the enterprise's goodwill.