Research On The Valuation Of Private Equity Investment In China

After nearly 20 years of rapid development,China’s private equity investment industry has raised more than one trillion funds and tens of thousands of investment institutions.However,compared with foreign countries,China’s private equity investment industry is still immature and faces many problems.In this context,combined with the reality of China’s private equity investment,this paper makes an in-depth study on the valuation of private equity investment,and improves the valuation theory of private equity investment suitable for China’s actual situation,which is of great significance to promote the healthy and standardized development of the industry.This paper comprehensively uses the literature analysis method,case analysis method and quantitative analysis method,relying on the existing enterprise valuation theory for analysis,based on the logical thinking of "finding problems,analyzing problems,solving problems" to conduct in-depth research on the valuation of private equity investment.Firstly,by analyzing the limitations of valuation methods and theories of private equity investment,it is found that it is difficult to adapt to the practical requirements of private equity investment in China.Secondly,this paper analyzes the valuation of private equity investment in China,and summarizes the main factors affecting the valuation of private equity investment.Thirdly,based on the analysis of the main factors affecting the valuation,this paper puts forward a new idea of using a variety of valuation methods based on the analysis of financial indicators and non-financial indicators.Finally,the case study verifies that the new valuation idea is more suitable for the practice of private equity investment in China.This study shows that in China’s private equity investment,the existing valuation methods and theories have some limitations.The new idea of valuation based on the analysis of financial and non-financial indicators proposed in this paper is more scientific and reasonable.