Four common methods of company valuation

Relative valuation method, absolute valuation method, cost evaluation method and income evaluation method.

1. Relative valuation method: Relative valuation method is a method to evaluate the corresponding value of the target company based on the prices of other comparable companies.

2. Income evaluation method: Income evaluation method refers to an evaluation method of determining the price of the appraised assets by estimating the expected income of the appraised assets and converting it into the present value.

3. Cost evaluation method: Cost evaluation method refers to the method of pricing according to the investment cost, and estimates the objective value of the appraisal object by calculating the replacement price or reconstruction price of the appraisal object at the appraisal point, deducting depreciation.

4. Absolute valuation method: Absolute valuation method is a discounted cash flow pricing model valuation method by analyzing the history and current fundamentals of listed companies, predicting the future financial data reflecting the company's operating conditions, and obtaining the intrinsic value of the company's stocks.

Company valuation is a process of evaluating the intrinsic value of a company. It is the premise of investment, financing and transaction, which helps to ensure that both parties to the transaction have the same understanding of the company's value, so as to conduct fair transactions. There are many factors considered in the process of company valuation, including the company's assets, profitability, industry status, macroeconomic factors, market psychological expectations and so on. The methods and results of company value evaluation are very important for the company's business decision, market competitiveness and attracting investors' attention. In a narrow sense, company valuation also refers to the evaluation of the value of start-up companies.