Abstract

Contemporarily, in the process of China economic development, state-owned enterprises have exposed problems such as non-prominent main business and homogenized competition. The new round of state-owned enterprise reform aims to solve these problems, and reasonable evaluation of reformed enterprises is of great practical significance. This paper takes the case of the merger of China Electronics Technology Group Corporation (CETC) and China Potevio as the research object. The DCF valuation model is used to evaluate the enterprise value of the merged CETC, and the enterprise value of China Electronics is 13.77/share. Combined with the financial performance evaluation system of the electronics industry, it is concluded that the reform of state-owned enterprises should pay attention to the relationship between the industrial chain and bring into play the synergistic effect the merger behavior of China Electronics is evaluated, and the merger of China Electronics is successful and beneficial to the development of China electronics industry.

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