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/).
Cite this article
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 -