Enterprise Value Appraisal: Perspectives, Methods, and Practices

Author: Wang Shaohao
Publisher:
Publish Date: 2005-09-01
Features: "Enterprise Value Appraisal—Views, Methods, and Practices" is a book on enterprise value appraisal published after the release of China's "Guidelines for Enterprise Value Appraisal." This book provides a clear definition of the concept of enterprise value appraisal and offers detailed discussions on its theoretical foundations, technical methods, and practical applications. The content is novel, case studies are comprehensive, and the structure is well-organized, fully aligning with international practices in the field of enterprise value appraisal. The appendix also includes internationally recognized professional terms in enterprise value appraisal. This book provides valuable references and tools for appraisers and related professionals, covering both theory and practice.
—Dr. Chen Xiaoyue
This book is a combination of theory and practice in enterprise value appraisal, reflecting the current state of actual appraisals through the cross-application of various techniques. Appraising a company's value is not merely an art or a science but rather a harmonious blend of both in certain proportions. In this work, there must be sufficient scientific rigor, along with enough artistic elements. Appraisers cannot disregard science but must also apply their experience and judgment to succeed in every endeavor.
—William A. Hanlin Jr.
Appraising a company's value requires a wide range of information. This book is neither a purely academic textbook nor a manual filled with numbers and tables. Instead, it serves as a toolbox, demonstrating how various tools for enterprise value appraisal work together. The book emphasizes the application of mathematical models in value appraisal rather than their derivation. In other words, it is not limited to discussing the mathematical logic of various models but integrates them into the practical approximations, experience-based judgments, and other techniques used by appraisers. This is a book with sufficient theoretical knowledge yet highly practical.
—Professor Zhu Jiaxing
Enterprise value appraisal is a major business in the asset appraisal industry and a topic of great interest in related fields such as securities analysis and investment banking. The China Appraisal Association released the "Guidelines for Enterprise Value Appraisal (Trial)" in early 2005, marking a revolutionary new starting point for the rapid development of enterprise value appraisal in China. This book, aligned with the guidelines, begins with the basic concepts and value perspectives of enterprise value appraisal, discussing its fundamental principles, the three major appraisal approaches—asset-based, income-based, and market-based—and their specific methods. It introduces research findings on premiums and discounts in valuation both domestically and internationally and provides in-depth exploration of the characteristics of equity, such as controlling and non-controlling stakes, liquidity, and non-liquidity.
Addressing hot topics in value appraisal, such as the new economy and high-tech enterprises, the book examines practical issues in appraisals, including research and development expenses, leased assets, and WACC. Finally, it offers detailed discussions on practical operations in appraisal practice, such as data collection, on-site interviews, financial statement analysis, and report elements. This book can serve as a training textbook for registered appraisers and certified public accountants in enterprise value appraisal, as well as a reference and practical guide for appraisers, accountants, securities analysts, investment banking analysts, related researchers, senior management in enterprises, and postgraduate students in relevant fields.