The basic method of relative value evaluation model is as follows

Three methods of company value evaluation are relative valuation method, absolute valuation method and discounted cash flow method.

Market method refers to the evaluation method of selecting reference enterprises similar to the target enterprises, adjusting and correcting the market value of the reference enterprises through comparative analysis and quantitative differences, so as to calculate the market value of the target enterprises. The theory of market law comes from Marshall's Equilibrium Price Theory (1890), which holds that the supply and demand of commodities determine their value, and the result of the game between supply and demand forces in the market determines the market equilibrium price. The commonly used models in practice are price-earnings ratio (PE) and price-to-book ratio (PB).

Income method is to convert the future cash flow of an enterprise into present value and determine the enterprise value. The theory of income method comes from "utility theory of value", which measures the value of enterprise assets from the perspective of commodity utility, and expounds that enterprise value depends on the degree of consumers' recognition of enterprise commodity value. The main models of income method are DCF and EVA model.

Real option is the expansion of financial option pricing theory and method on real assets. The pricing objects are different, but the pricing parameters used in the valuation are the same.

Listed companies that split up and publicly issue shares need to be evaluated, state-owned and state-controlled enterprises need to be evaluated, and other types of enterprises are decided by shareholders. Under normal circumstances, non-state-owned companies conduct independent asset appraisal, which is mainly responsible to shareholders and investors, but the law does not stipulate that it must be evaluated.