A Research On Du Pont Valuation Method In The Evaluation Of The Real Estate Company On GM Company

Given the development of capital market and gradually improve,China's capital market has improved steadily.The real estate industry has also realized that it become a pillar industry of the national economy objectives.Given the importance of the real estate industry,the significance of the value of the real estate business assessment is also growing.Business Valuation is based on value management and value analysis,enterprise business as a whole valuation behavior,its role in today's increasingly prominent social activities.Accurate evaluation of a company's true value and analysis of the relationship between company value and company's market price have become the premier concern of all entrepreneurs and venture capitalists.This paper selects GM real estate company as a case study to explore the application of Du Pont Analysis System in the valuation of the real estate industry.Firstly,the paper shows overview of the DuPont analysis and business valuation methods and proposed the idea of DuPont valuation model;Next,we use three indicators in the decomposition of DuPont analysis: return on sales,total asset turnover and equity multiplier to discuss the impact on the enterprise value respectively.Then combined with the industry average index,we assign different weights for the ratio and adjust traditional price-earnings ratio method;Finally we take GM real estate company as an example and use traditional price-earnings ratio method and DuPont valuing method followed with comparative analysis,Finally,through the comparative analysis of the results of GM corporate value assessment,the conclusion and Suggestions for managers and investors to provide a reference basis.