High-tech Enterprise Value Evaluation

With the increase of China's scientific and technological strength,the number of high-tech enterprises in China has grown rapidly.Since high-tech enterprises have intrinsic characteristics such as high growth,high risk,high proportion of intangible assets,and high input compared with traditional enterprises,it is particularly necessary to scientifically and reasonably evaluate the value of high-tech enterprises.In the traditional method,the cost method will have the problem that the cost is not commensurate with the ability to create revenue;the market law lacks a perfect market and similar comparable companies;free cash flow may be negative free cash flow application.Therefore,traditional methods cannot accurately assess the value of high-tech companies.Residual income method is a method to measure enterprise value from the perspective of enterprise value creation.From the perspective of income,it can avoid the problem that the enterprise value may be generally overestimated.However,the high growth and uncertainty of the high-tech enterprise make it unsuitable to assess the company's value under the assumption that the company has a constant growth rate.Therefore,this article has made improvements in this regard and added risk adjustment factors to cope with the characteristics of high-tech enterprises with strong uncertainty.After making these adjustments for the characteristics of high-tech enterprises,the residual income method will be able to match the characteristics of high-tech companies more accurately.The adjustment of the residual income method in this paper may provide a new idea for improving the residual income method,enriching its form to apply to more types of corporate value assessment.This paper first studies the typical characteristics of high-tech enterprises.Then we studied which evaluation method should be selected for the characteristics of high-tech enterprises and improved the residual income method.Finally,the improved residual income method is applied to the valuation of listed high-tech companies in China to verify its accuracy and practicality.The conclusion of this paper is that high-tech enterprises have the characteristics of high proportion of intangible assets,high investment,high growth,high risk,and high profit potential.This determines that it is appropriate to measure it with the residual income method that measures the ability to create value.The residual income method assumes that the company will grow at a constant rate of growth indefinitely,change this part so that the residual income method more closely matches the characteristics of the company's high growth,and add risk factors to reflect the high-risk characteristics of the company.These improvements will make the residual income method more applicable to the valuation of high-tech enterprises.Applying the improved residual income method to practice shows that it can accurately assess the value of high-tech enterprises.