Research On The Application Of Income Method In Equity Value Evaluation

In recent years,with the development of market-oriented economy,the estimation of company value is becoming more and more important.For investors,the most important thing is the value of the company.However,our country is last century 80 time just execute market economy,just 30 years time.There are few objects for reference in the evaluation,and the relevant reference data are lack,which leads to the technology that has been used by developed countries in the west cannot be used well in China.In addition,the experience,subjective judgment,moral and other factors of the evaluation industry appraisers also lead to the evaluation results and the actual transaction value often have a great deviation.It is well known that there are many ways to evaluate the value of a company,and the application of income method is the most common among these methods.When using the income method,the company's future available cash flow is taken as the reference basis,so it will lead to a lot of artificial subjective prediction,and then leave a large valuation space for appraisers to evaluate.The discount rate is a very important parameter in the income method,so it is very important to determine the discount rate.Generally,when using the income method to evaluate the value of a company,the most commonly used method is the asset capital pricing model to calculate the return on equity.With this model,we need to determine the specific value of some parameters,which will produce different results depending on the appraiser.Therefore,it is necessary to determine the problems that should be paid attention to when using the asset capital pricing model and determining the discount rate more accurately when using the income method to evaluate the equity of a company,so as to provide some Suggestions for the equity value evaluation.The whole paper is divided into three parts.The first part is the introduction,focusing on the background,significance and research results at home and abroad.The second part is the main body.This paper USES the income method to evaluate the equity value,and the return rate needs to be determined when the income method is evaluated.This paper summarizes the ideas of the equity value evaluation in China's appraisal circle.This paper points out some problems existing in the use of enterprise equity valuation methods in the appraisal circle of our country,and suggests that in the evaluation of enterprise equity value,the method of income should be chosen,and the enterprise equity value should be evaluated by direct and indirect methods.Secondly,the capital asset pricing model is used to determine the return rate of the equity value in the evaluation of the equity value.For the determination of relevant parameters,explanations and Suggestions are made from both qualitative and quantitative aspects,and reasonable methods are optimized for the selection of relevant parameters.The main three parameters are risk-free return rate,risk premium and equity coefficient.Then applying the capital asset pricing model,for the dynamic problem of the capital structure in the forecast period,the author innovatively proposed the iterative method to finally determine the discount rate,and obtained the discount rate without financial leverage,so as to determine the discount coefficient and enterprise equity value.In view of the problems existing in the use of risk premium in the practical field,this paper selects the data of the past 20 years for statistical analysis,calculates its arithmetic mean and geometric mean,and finally selects the median value to supplement and modify the risk premium,thus obtaining the risk premium in the equity value evaluation.The third part is the application of case analysis.In view of the better discount rate after the modified parameters,the modified parameters are applied in the form of cases,so as to determine the equity value evaluation of the enterprise and make the modified parameters applied.Through the improvement of income method,the appraisal process can be more reasonable and scientific,and the appraisal result can be closer to the real value of enterprise equity.