Research On Application Of Grey Relation Analysis In Evaluation Of Enterprise Value By Market Method

In recent years,the continuous development of the market-based economy has led to more and more economic matters such as mergers,acquisitions and reorganizations of listed companies,and more and more corporate value assessment issues.Three basic methods of enterprise value evaluation: cost method,market method and income method.In the evaluation practice,the income method is the main,and the market method is the secondary.The market method is less used in China's evaluation practice,but it is widely used in foreign markets.The market method is based on the comparison of the financial data of the target enterprise and the comparable enterprise,and the adjusted value is used to obtain the assessed value of the target enterprise.The income method is to use the company's own financial data for value evaluation.The selection of comparable companies in the market method is more difficult and the information available is relatively limited.There are many factors that affect the transaction price of the company.It is impossible to include all the influencing factors when the market method uses the value multiplier correction.Most of the divisions choose comparable companies based on their own evaluation experience.As a result,subjective factors have affected the evaluation value of the enterprise to some extent,and they want to find a way to reduce the impact of empirical factors.Therefore,this article focuses on the introduction of this quantitative method,which can ensure the accuracy of corporate value assessment results.This article summarizes the research purpose,significance,literature review,and innovation points,explains the grey correlation degree theory in detail,lists the grey correlation calculation steps,and explains how to apply the market method to assess corporate value.The impact of subjective factors in assessing corporate value by the market approach is in the choice of comparable companies and the correction of value multipliers.Therefore,a quantitative analysis is proposed to reduce the impact of subjective factors on the evaluation results.This quantitative analysis is gray correlation.Analysis.The article uses Guilin Sanjin Pharmaceutical Co.,Ltd.'s medicine as an example.When selecting comparable companies,it uses gray correlation analysis to obtain the comparable company that is most similar to the target company.Then it sorts the size and calculates the correlation based on the calculated correlation The weight ratio of several comparable companies with the largest degree,and the correction of the value multiplier uses the price-earnings ratio.The use of gray correlation analysis can greatly reduce the impact of subjective reasons on the evaluation results.The results of the revised P / E ratio are compared with the market value of the target company,the reasons for the increase or decrease are analyzed,and the shortcomings of this article are summarized.