The Study Of High Valuation Appreciation Rate Case Of Enterprise Value Assessment In M&A

With the development of economy,the number of M&A of listed companies is growing rapidly.Valuation appreciation rate has always been the focus for investors and regulators.In recent years,the phenomenon of high valuation appreciation rate often occurs.There are more and more M&A failures because of high valuation appreciation rate.This article selects the typical high valuation appreciation rate case to study how to use market method more properly to evaluate the companies like Yuanchun Media co.,LTD.By studying the case,this paper summarizes the defects in the process of market method.Then,two kinds of modification schemes are proposed:the first is to revise the net profit forecast,the second is to modify the value ratio.In the analysis of the revised scheme,the rationality of the evaluation result and the advantages and disadvantages of the revised scheme are analyzed.After analysis,the evaluation results of the two revised schemes are reasonable.The following conclusions can be drawn from the case study:the choice of comparable subjects in market method should be more about quality than quantity;Value ratios should be chosen appropriately in the process of market method,income ratios are more appropriate for companies that have lost money in previous years;When earnings forecast is difficult or uncertain,we can take into account both the growth rate of enterprise itself and the growth rate of comparable target,then reasonably assign different weights to the two growth rates;In the process of adjusting the value ratio coefficient,the comparison period should be chosen appropriately.