Research On The Valuation Of KR Education Company After Capital Increase

KR Education Company is a fast-growing education and training institution,mainly engaged in online vocational education and children's STEAM education.Under the state's policy of industrial upgrading and the reform of the state's education system,it has sustained capacity and room for growth.Due to the needs of the company's business development,adjust the company's strategy,while expanding the market for Vocational education,gradually expand the children's STEAM education market.As the adjustment of strategy needs to raise 50 million yuan,KR company needs to confirm the proportion of shares in the amount of financing.This paper chooses a suitable method of enterprise value evaluation to evaluate the intrinsic value of KR company,in order to confirm the proportion of shares in financing amount,and provide basis and reference for negotiation of financing transaction price.Combining the characteristics of KR company and its business model,this paper expounds the necessity of choosing the discounted free cash flow model through several common valuation methods in practice.On this basis,the two stage model is applied to give specific application steps to company value assessment.In order to predict the valuation parameters of KR company effectively,the internal and external environment that affects KR company will be analyzed.Through the analysis of the internal and external environment of KR online education company,it is concluded that the two main businesses of KR are in the blue ocean of the industry and have great development potential.Based on the core competitiveness of KR from the aspects of products,mechanisms,channels and industrial chains,it is determined that KR will maintain rapid growth in the next three years.Based on the analysis of historical financial data,this paper predicts the financial ratio of KR's capital increase:(1)High-speed growth period During the period from 2019 to 2021,the growth rate of the company's operating income after capital increase is 75%,50%,25%,and will continue to grow steadily with a sustained growth rate of 4% after 2022.(2)After the capital increase,the gross profit margin will remain at 45%,the operating expense ratio will remain at 17%,the management expense ratio will be 9%,and the working capital will account for 23.66%.It is calculated that the equity value of KR company is 473.52 million yuan,and the proportion of capital increase of 50 million needs to be 10.56%.Through single factor sensitivity analysis,it is found that gross interest rate,operating expense rate and beta value are the sensitive factors affecting the intrinsic value of KR company.Through multi-factor sensitivity analysis,the value of KR company is between 239.88 million yuan and 491.53 million yuan.As the company has no financial liabilities,the equity value is between 239.88 million yuan and 491.53 million yuan.The proportion of shares increased by capital is 10.17%-20.84%.This study can estimate the intrinsic value of KR education company after capital increase,and provide reference for financing negotiation of KR education company.