Research On The Equity Valuation Of Unlisted Companies In Market-Oriented Debt-for-Equity Swap

On October 10,2016,the state council issued two documents,"opinions on actively yet prudently reducing the leverage ratio of enterprises" and "guidance on marketized bank's debt-to-equity swap",which marked the beginning of a new round of debt-to-equity swap in China.Compared with the first round of policy-based debt-to-equity swap,this round of marketoriented debt-to-equity swap emphasizes the autonomy of choice between financial institutions and enterprises and the flexibility of debt-to-equity swap.When Banks and other financial institutions sign debt-for-equity framework agreements with enterprises,the implementation of debt-forequity swap will involve the pricing of equity.As a neutral third party,asset appraisal institutions should use their professional knowledge and skills to evaluate the equity value of enterprises that implement debt-for-equity swap,so as to provide a reasonable value reference for the pricing of equity and ensure the smooth progress of market-oriented debt-for-equity swap in China.In this paper,from the perspective of equity value evaluation of market debt quasi-share,the suitable method of equity evaluation of non-listed companies is studied.Firstly,relevant literature and materials about the valuation of unlisted equity at home and abroad are sorted out.Through comparative analysis of four methods of the equity value assessment of enterprises,it is found that income method is the most suitable method for the valuation of equity in market-oriented debt-for-equity swap.By collecting and sorting out 645 equity value assessment reports of China's non-listed companies in 2017,this paper analyzes the appropriate methods for equity value assessment of non-listed companies from two perspectives,including different types of equity transactions and different industries.The conclusion is that the income method is most suitable for the equity value assessment of non-listed companies that have development prospects and can bring future earnings.Secondly through the analysis of non-listed company's equity flows,fixed income approach to the traditional model,liquidity discount rate model is set up,make the income method to evaluate the value of the equity of unlisted companies more close to the true value of equity of enterprise.In the end,the paper applies the modified income method model in the case of shaanxi coal and chemical industry group co.,LTD.The equity value of the subsidiary company,shaanxi shaanxi coal and yubei coal industry co.,LTD.,involved in the implementation of the marketoriented debt-for-equity swap was evaluated,which provided a value reference for the benefit distribution of all parties involved in the marketoriented debt-for-equity swap.At the same time,the implementation of the parties in the market of our country debt convertible and the asset appraisal institution proposes countermeasures and suggestions about the equity value evaluation,and the marketization of debts into shares of equity exit value evaluation and value evaluation research put forward the prospect of creditor's rights,expected by research from the angle of assets appraisal to our country promote the implementation of the marketization of debt convertible.