Enterprise Value Assessment Research Articles

Enterprise Value Assessment of Wuliangye Based on Improved Residual Income Model

Enterprise Value Assessment of Wuliangye Based on Improved Residual Income Model

Enterprise Value Assessment for Xiaomi Group under the Condition of Xiaomi’s Electric Vehicle Release

Enterprise Value Assessment for Xiaomi Group under the Condition of Xiaomi’s Electric Vehicle Release

Research on the Problems and Methods of High-tech Enterprise Value Assessment

With the rapid development of high-tech in the world, the high-tech industry system based on high-tech development has more and more room for development. High-tech enterprises have become the main industry for competition among countries in the world by taking advantage of their strong product correlation, high added value, low pollution and low energy reserves. This study explores the value assessment methods of high-tech enterprises and the characteristic problems existing in value assessment, and proposes corresponding solutions and coping strategies.

Analysis of Enterprise Value Assessment: Evidence from Xiaomi Group

Xiaomi's initial public offering in Hong Kong in 2018 coincided with a downturn in the Hong Kong stock market, with several mainland companies listed in Hong Kong falling below the issue price on the first day of listing. Investors have to be more cautious nowadays under the complicated international background such as the Fed's interest rate hike. On this basis, this study chooses to assess the enterprise value of Xiaomi, using the EVA valuation method and combining the various data disclosed in Xiaomi's annual reports for 2018-2022 to measure the EVA value. After measuring the data required in EVA model, Xiaomi's overall trend in recent years has first increased and then decreased. In 2018-2019 the overall development is good, and the market outlook is vast; but in 2020-2022 the development is limited due to its own and external general environment, of which 2022 experiences a substantial decline since the IPO. Xiaomi's complex attributes make its valuation difficult, and these results estimate its intrinsic value through a clear method for investors.

Enterprise Value Assessment Based on Real Option Approach: The Case of SEMCORP

As the core power source of new energy vehicles, the lithium battery industry has ushered in a high-speed development, and has become the most widely used battery technology system. Due to the industry's high technical barriers, imperfect system, high volatility risk and other characteristics of the lithium battery enterprise value the overall assessment of the difficulty of ordinary investors to make a more accurate judgment. As an important representative of the lithium new energy materials industry, SEMCORP is in a golden development period. Based on the research results of previous researchers on enterprise value assessment, this paper examines the value assessment of n SEMCORP. Specifically, this paper applies a two-stage growth model to calculate the present value and evaluates the potential value separately with the help of an option pricing model to obtain its overall value. After analyzing, conclude that SEMCORP 's shares are overvalued. This paper can provide decision-making references for the investment and financing of Chinese lithium new energy materials enterprises, as well as further enriching the application of enterprise value assessment methods.

Research on Power Battery Enterprise Value Assessment Model: Taking CATL as an Example

Research on Power Battery Enterprise Value Assessment Model: Taking CATL as an Example

Innovative content-functional and organizational features of forming the potential of an enterprise from the position of economy digitalization

The article develops conceptual approaches to defining the essence of the concepts "potential", "enterprise potential" and "enterprise development potential". According to these approaches, the potential of any object is identified with the set of its functional properties, which this object exhibits or can exhibit under a certain state of the environment in which it is located, and the potential of the economic development of the enterprise is interpreted as a set of additional functional properties, which the enterprise can acquire under a certain state of the environment in which it is located, while increasing the value of its existing economic potential and added value. The article highlights some possibilities of improving the quality of enterprise value assessment through quantitative and qualitative assessment of enterprise potential. For this purpose, the main factors affecting the potential of the enterprise, its reproduction and development are considered, taking into account the further development of the toolkit for assessing the potential within the framework of the assessment of the value of the enterprise using the adapted BSC (Balanced Scorecard) approach, which provides a comprehensive assessment based on both the determination of the value of key elements of the potential in accordance with the goals – synergy from the integration of resources and efforts, knowledge and skills, ideas and actions, decisions and actions, etc., as well as on the study of the dynamics of changes in its state and efficiency of use. The measurement of the enterprise's potential as a production system should include the assessment of all its components in view of the determining and different factors of their nature: the level of achievement of goals, the efficiency of operation, the ability of the management system to progressive self-improvement and self-development. This makes it possible to define it as the sum of production, labor, financial and innovation potentials on the basis of expert assessment to determine other components, interpreting them as a set of resources, dynamic capabilities and key competencies that can be maximally used in the economic activity of the enterprise to implement the selected innovation strategy development in an unstable external environment.

Applying the Value Assessment of New Energy Companies Based on the EVA Model—An Example from Ningde Times New Energy Technology Co

Compared to traditional methods of assessing business value, the EVA method can evaluate business value in a more reasonable manner. The purpose of this paper is to assess the business value of Ningde Times, one of the representative firms in the new energy industry, based on EVA model in order to prove the reasonableness and reliability of EVA method in evaluating the value of new energy companies. By analyzing the current financial situation of Ningde Times and applying the two-step EVA model to evaluate its business value, in the final calculation, Ningde Times is found to overestimate its per-share value, which is consistent with the direction of its trend in the stock price market, indicating that the EVA model is reasonable and reliable for estimating firm value, which provides a benchmark for enterprise value assessment of the new energy sector.

On the Differential Analysis of Enterprise Valuation Methods as a Guideline for Unlisted Companies Assessment (II): Applying Machine-Learning Techniques for Unbiased Enterprise Value Assessment

The search for an unbiased company valuation method to reduce uncertainty, whether or not it is automatic, has been a relevant topic in social sciences and business development for decades. Many methods have been described in the literature, but consensus has not been reached. In the companion paper we aimed to review the assessment capabilities of traditional company valuation model, based on company’s intrinsic value using the Discounted Cash Flow (DCF). In this paper, we capitalized on the potential of exogenous information combined with Machine Learning (ML) techniques. To do so, we performed an extensive analysis to evaluate the predictive capabilities with up to 18 different ML techniques. Endogenous variables (features) related to value creation (DCF) were proved to be crucial elements for the models, while the incorporation of exogenous, industry/country specific ones, incrementally improves the ML performance. Bagging Trees, Supported Vector Machine Regression, Gaussian Process Regression methods consistently provided the best results. We concluded that an unbiased model can be created based on endogenous and exogenous information to build a reference framework, to price and benchmark Enterprise Value for valuation and credit risk assessment.

Value assessment of companies by using an enterprise value assessment system based on their public transfer specification

A reasonable value assessment method plays an important role in both companies’ internal management and their external transactions. Traditional value assessment methods like the relative valuation method need historical financial indicators and some market multipliers but ignore non-financial information included in the text. Startup companies are usually listed before they start to make a profit, which means traditional value assessment methods are unable to access reliable financial information. This study firstly investigates companies’ non-financial information and proposes a text-based Enterprise Value Assessment System (EVAS) to extract features. Then, two neural network-based models are constructed to predict one essential factor K in order to improve the P/B relative valuation method. Our experiment in China's National Equities Exchange and Quotations (NEEQ) shows an impressive result on companies’ value assessment compared to the traditional value assessment model. The result concludes that introducing non-financial text information into value assessment based on our system improves the accuracy of value assessment for startup companies.

Technology enterprise value assessment based on BP neural network

Proposed a technology enterprise value assessment model based on BP neural network, considering that the technology enterprise has the characteristics of asset-light and high growth, whose value is difficult to evaluate. The model not only includes the non-financial indicators with intellectual property and the financial indicators with performance, but also has the advantages of artificial intelligence. Through analysing the model, it can be seen that increasing the intellectual property indicators can reduce the assessment deviation and the traingda is optimal in the negative gradient learning functions.

Technology enterprise value assessment based on BP neural network

Technology enterprise value assessment based on BP neural network

Growth Enterprise Value Assessment Based on RF-BP Neural Network

Enterprise value assessment is an important prerequisite for company activities including listings, mergers, and acquisitions. In order to overcome the limitations of the methods including income method, market law, and to improve the accuracy of enterprise value assessment, this research has used the historical data of 164 growth/developing companies listed on the Growth Enterprise Market (GEM) to conduct neural network training, so as to explore the accuracy and applicability of the evaluation methods of enterprise value based on deep learning. The most important five types of indicators from many indicators were firstly selected with the random forest (RF) algorithm, then used as neural network input neurons. Meanwhile, in order to improve the learning ability of the neural network, this study has used RMSProp algorithm to rectify the node weights and offsets, which reduces the problem that the neural network may fall into the local minimum. The results gained from the training and testing of the data show that the method has high accuracy.

A Study of Financial Acquisition Risk Identification and Prevention

In this paper, the financial risk of Ping An Insurance (Group) Company of China, Ltd. acquisition of Shanghai Jahwa United Co., Ltd is divided into the target enterprise risk assessment risk, financing risk and uncertainty of future earnings according to M & A links. The study finds that the target enterprise value assessment under market approach is close to the transaction price; the financing risk can be divided into long-term risk and short-term risk; Uncertainty of future earnings arises from the volatility of the stock price caused by the uncertainty of the target enterprise. To reduce these three risks, this study suggests that M & A companies adopt a variety of methods to comprehensively assess the value of the target enterprise, rationally design the financing plan and pay close attention to the target business operation.

Problems and Countermeasures on Enterprise Value Assessment in China

New economic and enterprise forms are appearing from time to time with the development of market economyas well as globalization of world economy. Accordingly, it is of particular importance and of great potential toassess enterprise value objectively, fairly, effectively and timely. Beginning with some problems on currententerprise value assessment in China, this paper then comes up with relevant countermeasures.