Valuation And Empirical Research Of High-technology Companies

After long-term development,there have been relatively complete and mature evaluation methods and models of valuation theory,widely used in mergers and acquisitions and restructuring activities in investment companies in developed countries.Yet a growing phenomenon indicated that the current assessment methods for the high-tech industry companies were not fully applicable.Evaluation methods for old-school enterprise were not analyzed for applicability and limitations of the characteristics of high-tech enterprises.It becomes increasingly necessary to explore the characteristics of their own evaluation methods for high-tech enterprises.The high-tech industry has a significant intangible assets ratio and other features for stopping valuation methods of the outmoded business from their applicability.And the existing method of valuation based on a particular occupation for an enterprise instead of specific sectors of a particular industry.Therefore,multiple factors that would be selected bear upon the enterprise value as variables to evaluate the high-tech industrial enterprises by building multiple linear regression models to analyze and evaluate high-tech enterprises.Concepts of high-tech industries and high-tech enterprises were defined and the importance ofthe valuation of high-tech enterprises was discussed.Then the development of the evaluation model was introduced and compared to several traditional valuation methods used to examine the possibilities and limitations of high-tech enterprises.Depending on the characteristics of high-tech enterprises,a series of assumptions and analysis of high-tech enterprises own characteristics and pricing models is discussed to determine the basic conditions for the function of the model and the variables.That is to say,study the value of high-tech enterprises constituted first.Its value is weighed by the profitability of the existing basis of value creation,value and high-tech industry enterprise business development opportunities for high-tech potential profitability to create value for to create formed.Then build on the high-tech enterprise evaluation index system of value analysis,consisted by two sub-index systems,financial factors,and non-financial factors.The value of the indicator system reflects the impact of the financial value of the organization,including 8 indicators,such as profitability,solvency,operational capacity and technical,to assess six aspects including innovation,the comprehensive efficiency of human resources,risk factors,the value of trade opportunities and corporate governance structure.Then,the research focus on using empirical analysis selects stocks of 252 technology sector companies listed on the market as the sample data to assess and evaluate the valuation,and compare with the traditional method of comparative analysis using price-earnings ratio.The results showed that multivariate regression which demonstrates the characteristics of high-tech enterprise assessment model is more objective and reliable than the traditional assessment methods.In the end,a few valuation questions of multiple linear regression models that need to be noticed mainly lie in lacking elementary conditions and uncertain determination of variables.