Three methods of enterprise valuation?

There are three main methods: profitability evaluation method; Financial analysis methods; Market rules.

1. Profitability evaluation method: This method is an evaluation method that reflects the company's value from the perspective of investors and based on the expected future profitability.

2. Financial analysis method: it is a method to evaluate the company's value according to the company's current operating conditions. It believes that the enterprise value is the sum of the company's final income and the discount rate of that income.

3. Market method: This method is a method to determine the market value of a company by comparing the differences between the company and the same industry and the characteristics of the company. Its basic principle is to compare the company price with relevant market data or current market price, so as to calculate the company value. It can evaluate the company's value by comparing with current market data and prices.

How to calculate the company valuation?

The company's valuation is calculated by P/E ratio, PEG and P/B ratio. P/E ratio formula: P/E ratio = price per share/earnings per share.

PEG formula: PEG=PE/ (net profit growth rate * 100). When PEG is smaller and smaller or not higher than 1, it means that the current stock price is normal or undervalued, and when it is greater than 1, it is overestimated.