What are the scope of company value evaluation?

Enterprise value evaluation is the product of modern market economy, which meets the needs of frequent economic activities such as enterprise reorganization, company listing, enterprise merger and transnational operation. Due to the particularity and complexity of the appraisal object, it has become an asset appraisal business with wide coverage and strong technology.

The general scope of enterprise value evaluation is the asset scope of the enterprise. From the perspective of property rights, the scope of enterprise value evaluation should be all assets of the enterprise. Including the part owned and operated by the enterprise property rights subject, the part controlled by the enterprise property rights subject, such as wholly-owned subsidiaries, holding subsidiaries and investment parts in non-holding companies.

The specific scope of enterprise value evaluation. After defining the general scope of enterprise value evaluation, the defined enterprise asset scope cannot be directly used as the specific asset scope of enterprise value evaluation. Because the enterprise value is based on the overall profitability of the enterprise. Therefore, judging the enterprise value is to correctly analyze and judge the profitability of the enterprise. Enterprise is an asset complex composed of various single assets, which have different contributions to the formation of enterprise profitability. Among them, the assets that contribute to the formation of enterprise profitability are effective assets of the enterprise, while the assets that do not contribute to or even weaken the formation of enterprise profitability are invalid assets of the enterprise. The profitability of an enterprise is the result of the interaction of its effective assets. To correctly reveal the enterprise value, it is necessary to correctly define and distinguish the effective assets and invalid assets within the enterprise assets, and take the effective assets of the enterprise as the specific asset range for evaluating the enterprise value. This distinction is an important prerequisite for enterprise value evaluation.