Who knows what enterprise value means? What is the enterprise value calculation model?

Enterprise values refer to the basic beliefs and goals advocated by enterprises in the process of pursuing commercial success. Philosophically speaking, values are an idea about the usefulness of objects to subjects. And corporate values are the final judgment of corporate significance recognized by all or most employees.

The value mentioned here is a subjective and optional relational category. Whether a thing is valuable depends not only on who it is meaningful to, but also on who is making judgments. Different people are likely to make completely different judgments. For example, enterprises take judgment as the standard value. When there is a contradiction between profit, efficiency and innovation, they will naturally choose the latter to make way for profit and efficiency. Similarly, other enterprises may think that the value of an enterprise lies in getting rich, making profits, serving and educating people. Then, the values of these enterprises can be called "getting rich values", "making profits values", "serving values" and "educating values" respectively.

In the development of western enterprises, corporate values have undergone various forms of evolution, among which profit maximization values, management values and social mutual benefit values are typical corporate values, which respectively represent the basic beliefs and value orientations of western enterprises in three different historical periods.

Profit maximization value means that all management decisions and behaviors of an enterprise focus on how to obtain the maximum profit to evaluate the quality of enterprise management.

Business management values refer to the values formed by managers entrusted by investors to engage in business management under the conditions of expanding scale, complex organization, huge investment and scattered investors. Generally speaking, in addition to making profits for investors as much as possible, we also attach great importance to the realization of self-worth of enterprise personnel.

The value of mutual benefit of enterprise society is a kind of enterprise value in western society, which rose in the 1970s. It requires that the interests of employees, enterprises and society should be taken into account when determining the profit level of enterprises, and there should be no bias.

One of the most prominent characteristics of contemporary enterprise values is people-oriented, guided by the humanistic thought of caring and caring for people. In the past, corporate culture also regarded talent training as an important content, but only as a means. Some western enterprises attach great importance to investment technology training and employee skills training as a way for enterprises to improve efficiency and gain more profits. This practice is actually using people as tools. The so-called talent training is just to improve the performance of tools and improve the efficiency of use.

The development trend of contemporary enterprises has begun to regard human development as an end rather than a simple means, which is a fundamental change in corporate values. Whether an enterprise can provide employees with a good environment suitable for human development and create all possible conditions for human development is the fundamental symbol to measure whether a contemporary enterprise is superior or inferior, cash or backward. Kant, a German thinker, once pointed out that after all kinds of conflicts, sacrifices, hard struggle and a long and complicated journey, history will point to a beautiful society that gives full play to all human talents.

With the development of modern science and technology, the real wealth of modern and 2 1 century civilization will be increasingly manifested in people's domination of the objective world through the exertion of the essential strength of the subject. This requires the all-round development of people, and it is of great significance to study the all-round development of people, both for people in enterprises and for the whole society.

China enterprise culture network. (China Corporate Culture Network)

Enterprise value calculation model

How to calculate the enterprise value?

In this lecture, we will introduce several methods to calculate the intrinsic value of enterprises. Before that, I'll make some necessary explanations. First of all, although we all know how important it is to calculate intrinsic value, we have to admit that it is impossible to calculate intrinsic value accurately. The reason is:

1. Enterprise is a living and complex organization, which is always changing;

2. The economic environment in which the enterprise is located has great influence on the enterprise value;

3. External investors can't know the enterprise better than insiders;

4. The calculation of intrinsic value includes personal subjective factors, including personal experience, investigation methods and understanding of enterprises and markets.

Therefore, the calculation of intrinsic value is not so much to get a quantitative result as to get a qualitative evaluation. Some people may ask, without a quantitative figure, can you decide whether to invest or not just by the quality of enterprise judgment? The answer is no, of course. After understanding the characteristics of the enterprise, we can calculate an estimated value or a range according to our own understanding. Only when the stock price is much lower than this estimated value, or at the lower end of this range, can investment be considered.

Secondly, the value investment law advocates a conservative and cautious attitude in calculation. As mentioned above, because there are many uncertain factors that affect the calculation results, in order to keep our behavior within the scope of investment definition, that is, to ensure the safety of principal and income, we must exclude optimistic, predictive and unreliable elements when calculating intrinsic value. To this end, investors are required to conduct a detailed investigation and analysis of the enterprise and learn as much as possible about the enterprise. At least you have to. Of all the people you know, you know this enterprise best.

Now let's introduce three methods to calculate intrinsic value. They are divided according to different purposes.

1. Basic value calculation method (or liquidation value calculation method): the calculation method used when an enterprise goes bankrupt and sells off. At this time, people are most concerned about how much money they can get back. Therefore, liquidation value is equal to the current realizable assets of the enterprise minus all liabilities that must be repaid. The formula is as follows:

Basic value = cash held+bank deposits+securities held+other realizable assets-total liabilities.

The first three items on the right side of the formula can be found directly in the current assets item of the balance sheet. Other realizable assets in Item 4 are calculated by discounting other current assets and fixed assets. And all liabilities can be obtained directly from liabilities. Of course, there are other items on the balance sheet that may be realized or recovered, which must be calculated according to the specific conditions of different enterprises. But on the whole, the number will not be very large.

2. Income value (EPV): This is the calculation method when the enterprise enters the normal operation track and has stable income. Defined as the sum of the present value of fixed distributable income. The concepts used in the definition are explained as follows.

(1) Distributive income refers to the residual income that an enterprise can obtain through production activities every year without putting into reproduction, commonly known as free cash flow, and the formula is:

Distribution income = net profit+depreciation expense-equipment investment-other undistributable parts.

Although we can easily get the value of net profit from the profit and loss calculation table. But this is only the result of accounting books, and does not represent free cash flow. And this number is very operational (sometimes its tricks are very clever and can fool professionals). Among them, the most decisive is the treatment of depreciation expense and equipment investment. The value investment method holds that depreciation expense is only the expense in accounting accounts, and the value it represents is not paid to anyone, but in the hands of the enterprise and must be added back to the distributable income. On the contrary, equipment investment is the actual cost of making profits. In order to ensure the next year's income, enterprises often need to invest in equipment renovation and other funds, and this part of the income is not distributable and must be deducted from the net profit. The other undistributable parts on the far right refer to the special expenses of the enterprise in a certain year, such as legal fees, expenses required for the change of pension system, etc. Similarly, this part of the income is also distributable and must be deducted from the net profit.

(2) Fixed: This is a hypothesis. It does not represent the real situation of every enterprise. However, we can find the enterprises that meet this assumption by analyzing the long-term operating state of the company and comparing with the same industry. On the other hand, the value investment method does not recommend calculating the income value to obtain the intrinsic value of the enterprise that does not meet this assumption.

(3) Present value: refers to the value after considering the impact of future currency depreciation. Currency devaluation actually means a decline in purchasing power. The decline in purchasing power is not only an absolute decline caused by inflation, but also a relative decline caused by bank interest rates. For example, 100 yuan is always 100 yuan at home. If the inflation rate is 1%, you can buy things in 99 yuan. If you deposit this 100 yuan in the bank, you can get back 102 yuan one year later (according to the current long-term deposit interest rate of 2%, regardless of tax increase). If the inflation rate is 1%, you can buy things from 0 yuan at 1065438. At this time, the purchasing power of 100 yuan at home is only 0.98 (= 99/10/) of the 100 yuan deposited in the bank, which means that the purchasing power of 100 yuan after one year is only in 98 yuan. This purchasing power is the present value. Similarly, the future income obtained through investment must consider the bank interest rate and inflation to calculate its present value.

Since we assume that the distributable income will remain the same value indefinitely, we can get the following formula:

Value of income (EPV) = distributable income/(long-term deposit interest rate+inflation rate)

3. Growth value: defined as the sum of the present value of distributable income considering the future growth of income. Provided that the distributable income keeps the same growth rate for a long time. The formula is as follows:

Growth value = distributable income/(long-term deposit interest rate+inflation rate-distributable income growth rate)

This calculation method is often used in securities analysis. You can see that the growth value will be greater than the income value due to the decrease of denominator. The value investment method thinks that the forecast of future growth rate is more unreliable than the forecast of future income. Although in many cases, the growth value will be closer to the stock price, but the increase of uncertainty will make its value deviate from the real intrinsic value. Finally, it is only an explanation for the high market price. To this end, analysts provide a multi-stage profit valuation method, that is, assume that the growth rate gradually slows down to correct the excessive growth value. But that doesn't make people think it's more reliable. Of course, the value investment law does not deny the existence of growth factors in the intrinsic value of enterprises. It is conservative to calculate the growth value only when the return on investment cost of the enterprise is much higher than the average level and there is enough evidence to show that this advantage can be maintained for a long time. Value investors are always "suspicious" when making predictions and the like.

To sum up, value investment believes that in order to ensure the rationality of the internal value calculation process of enterprises, it is necessary to obtain strong evidence to find enterprises with long-term stable profits and good development prospects. Not every enterprise can calculate its intrinsic value. This is also the reason why Buffett does not invest in emerging enterprises and high-tech enterprises.