The Valuation Of M Company Based On Residual Income Valuation Model

With the rapid development of capital market in China and the increasing degree of open market,the research on the field of value evaluation has become an important focus for enterprises,investors and governments.On the one hand,active economic transaction activities,frequent equity flows increase the demand for enterprise value assessment,on the other hand,with the continuous improvement of enterprise modernization system,the financial management goal of enterprise pursuing value maximization also promotes the development of enterprise value evaluation theory and business.The research takes M company of textile and garment industry as the target analysis company,and uses both qualitative research and quantitative research,combines normative research and case study to study the equity value of M company which to be acquired.This paper firstly introduces the background and significance of the thesis,the content of the proposed research and the research methods used,and introduces the innovation and deficiency of the research.Then,by reviewing the relevant theories,methods and models of the equity valuation of both domestic and international enterprises,and introducing the theory and method of the value assessment,it is concluded that we can use the residual income model to evaluate the equity value of M company.And then describes the basic theory and evaluation process of the residual income model.By introducing the improved residual income model of DuPont analysis system,the equity valuation of M company is transformed into the analysis and prediction of accounting information and related accounting indicators.After the basic operation of M corporation and the development of the industry has been combed and analyzed,using financial index analysis to analyze and predict the current state of the firm and its future.On this basis,the valuation parameters are analyzed and predicted by using the improved residual income method,and the evaluation results are obtained and the appropriate analysis is made.Finally,the conclusion of this case is determined.At the end of this paper,the main conclusions of this paper are summarized,and further research Suggestions are given.The results of this research can help managers of M company to understand the business situation comprehensively,strengthen the enterprise value management,provide basis and reference for the negotiation of equity transaction price,and lay a solid foundation for the successful equity trading.