A Dynamic Valuation Method of the Target Enterprises to be Invested by China Private Equity

DOI

10.2991/itms-15.2015.29How to use a DOI?

Keywords

dynamic valuation method; Investment cycle; Operating risk; Three stages cash flow method; JP model

Abstract

In this article, the construction of valuations in Chinese private equity fund, the process and the steps of the construction and three important problems during the process were discussed. In order to solve the three problems, firstly, the real value of the evaluation before certain point was determined and evaluated; Secondly, the three stage cash flow method or JP model as a benchmark model ware put forward; Finally, the idea that bring down the individual enterprise management risk with a common characteristic of enterprise groups average operating conditions was introduced. Thus the valuation method, which was targeted for the object of China private equity fund companies of two significant characteristics: long investment recovery period and the future big uncertainty, was presented. It is more suitable for Chinese small and medium-sized enterprises (SMES) or a high and new technology enterprise value for quite a long time, compared to the current valuation method for large enterprises or western.

Copyright

© 2015, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xichen Zhao
PY  - 2015/11
DA  - 2015/11
TI  - A Dynamic Valuation Method of the Target Enterprises to be Invested by China Private Equity
BT  - Proceedings of the 2015 International Conference on Industrial Technology and Management Science
PB  - Atlantis Press
SP  - 113
EP  - 117
SN  - 2352-538X
UR  - https://doi.org/10.2991/itms-15.2015.29
DO  - 10.2991/itms-15.2015.29
ID  - Zhao2015/11
ER  -