Analysis Of The Value Of Private Equity Investment In The Project

As a new way of investment and financing,private equity investment has effectively solved the financing difficulties of small and medium-sized private enterprises.In the whole process of private equity investment,the investment value analysis of the underlying project is very important.The entrepreneur cares most about the valuation of his own enterprise,and the rationality of the valuation directly determines the success or failure of the investment.The valuation of the enterprise becomes the core of the negotiation between the two sides,so it is of practical significance to form a scientific valuation system.The domestic private equity investment develops late,many theories are based on the western research foundation,because each country's specific national condition and the development characteristic are different,and the private equity investment profession data are generally not public.Make most of the research is focused on theory,the guiding significance of the practice needs to be further improved,so this paper combined with the theoretical analysis of specific cases for empirical analysis,has practical significance.In this paper,the basic theory of economic finance,case analysis,investigation analysis,quantitative analysis and other methods of in-depth study of topics.On the basis of combing the current research situation of private equity investment,this paper puts forward a project value analysis system,and then analyzes the financial and non-financial aspects of A company.For the analysis of non-financial factors,we adopt the idea of macro-micro analysis,first from the macro analysis of the current situation of industry development,trends,supply and demand situation,market space and competition pattern,and then from the micro level analysis of the basic situation of enterprises,The company's core competitiveness and growth drivers.In terms of financial factors,by using the method of financial ratio analysis,the paper analyzes the solvency,profitability and cash flow of A Company,and forecasts the net profit and cash flow of Company A in the next five years.The free cash flow model and the relative valuation method are used to estimate the investment income and establish a set of paradigm of private equity investment value analysis.By analyzing the case of company A,it is concluded that company A is a growth enterprise with broad industry space,stable financial situation,and potential risks can be effectively avoided.According to the valuation,the investment income is also competitive in the same kind of investment.In addition,this study has certain reference significance to the private equity investment business operation,and also provides a more comprehensive reference for the financing needs and corporate governance of small and micro enterprises.