In Finance, What Is an Enterprise Multiple?

A financial enterprise refers to an enterprise that needs to obtain a financial business license granted by the financial supervision department in order to execute its business, including a postal savings bank, state-owned commercial bank, joint-stock commercial bank, trust and investment company, financial asset management company, Financial leasing companies and some financial companies; securities companies, futures companies, and fund management companies that need to obtain securities business licenses; various insurance companies that need to obtain insurance business licenses.

Finance companies

Article 3 of the Financial Rules for Financial Enterprises stipulates: "Financial enterprises shall establish and improve internal financial management systems in accordance with the provisions of this rule and their own development needs, set up financial management functional departments, allocate professional financial management personnel, comprehensively use planning, Forecasting, planning, budgeting, control, supervision, assessment, evaluation and analysis, etc., to raise funds, operating assets, control costs, allocate revenue, allocate resources, reflect operating conditions, prevent and resolve financial risks, and achieve continuous operation and value maximization . " ^[1]

Financial companies (including a series of derivatives such as precious metals stocks and foreign exchange spot)

balance sheet

A. Funding sources of financial enterprises:

a, various

Financial enterprise

Rating indicators are usually designed by rating agencies themselves, and generally include credit indicators, financial indicators and development capability indicators.

Credit ratings are usually divided into four levels of A, B, C, and D, and they are often divided into three levels within the same level.

Financial enterprise credit indicators

A. Goodwill: refers to the implementation of contracts and agreements, which are divided into four grades: good, better, average, and poor, and are generally determined based on past experience and social surveys.

B. The credit of the enterprise in the bank: including the loan repayment record and the enterprise's settlement record in the bank. Loan repayment records are determined to be four grades of excellent, good, average, and poor according to the company's overdue and owed records; bank settlement records can be measured by the company's average bank deposit to loan ratio (ie, settlement record = bank average deposit / loan balance) If the ratio is greater than 50%, it is excellent, 50% to 30% is good, 30% to 10% is normal, and 10% is poor.

C. Leadership credit of the enterprise: According to the character and credibility of the leader of the enterprise, four grades of superior, good, average and poor are determined.

Financial enterprise financial indicators

A. Net assets: reflect the overall strength of the enterprise.

For real estate enterprises, if it is more than 100 million yuan, it is the first grade, between 100 million yuan and 50 million yuan is the second grade, between 50 million yuan and 10 million yuan is the third grade, and less than 10 million yuan is the fourth grade.

B. Asset-liability ratio: reflects the economic independence of the enterprise.

Level 1: Within 30%; Level 2: 30% to 50%; Level 3: 50% to 70%; Level 4: greater than 70%.

C. Asset current ratio: reflects the solvency of the enterprise. Determine the level value according to different industries.

D. Turnover of accounts receivable: reflects the activity level of the enterprise and its ability to repay debts. Determine the level value according to different industries.

E. Inventory turnover: It reflects the various situations of the company's sales and production and its ability to pay debts. Determine the level value according to different industries.

F. Asset profitability: It reflects the efficiency of enterprise asset management.

First level: greater than 50%; second level: 50% to 30%; third level: 30% to 10%; fourth level: less than 10%.

Financial Enterprise Capability Index

A. Enterprise quality: management level, technical level, staff quality, adaptability, etc. Can be divided into excellent, good, average and poor.

B. Enterprise status: the company's popularity, market share, and the relationship between the company and the government. Can be divided into good, good, average and poor.

C. Enterprise intangible assets: patent rights, trademarks, geographical location, etc.

D. Mortgage assets of an enterprise: refers to the ratio of the amount of loans secured by the assets of the enterprise to the net assets of the enterprise, which reflects the ability of the enterprise to create and develop.

The index value is rated: first level: 0; second level: less than 10%; third level: 10% to 30%; fourth level: greater than 30%.

On the basis of determining three types of indicators: credit indicators, financial indicators, and enterprise development capability indicators, the indicators are weighted according to the characteristics of the rated unit and the importance of each indicator, and then the total score is weighted to determine its credit rating.