| With the continuous expansion and development of China's capital market and the reform of tax system,the transaction of operational assets in the open market has evolved from a single transaction of assets to the one based on enterprise ownership.The central issue of Equity trading is how to determine the real value of the corresponding assets.Being different from the single assets which can be priced by their simple cost or replacement cost,equity pricing is more considered about the future profitability,that is,how much value of the equity can be created in the future.Asset pricing and other relevant theories are the important basis of modern corporate financial management theory,and there have been various branches since the development.There are also different valuation theories and corresponding valuation methods for the pricing of a specific equity asset,each of which has its own characteristics and practicability.With the increase of the number of M&A(Mergers and Acquisitions)and the aggravation in transaction complexity in the capital market in recent years,how to choose a reasonable valuation method to carry out effective value assessment of equity assets in the market is an important issue to be faced with in the development of Chinese capital market.This paper evaluates the target assets of a M&A case in China's capital market based on the valuation theories and combined with the actual situation of the trading of listed companies.In this paper,the enterprise free cash flow method is used to reorganize and calculate the transaction,and try to overcome the influence of factors such as the completeness of information acquisition,the rationality of prediction and the subjective judgment problems existing in the adopted method.The transaction in the case is evaluated according to the analysis and calculation results.In the end,this paper also summarizes the used valuation methods,points out the advantages and problems,forecasts the environment of enterprise value assessment. |
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