What Is Enterprise Value?

Enterprise value refers to the value of the enterprise itself, and is a market evaluation of the tangible and intangible assets of the enterprise. Enterprise value is different from profit. Profit is part of the market value of all assets of an enterprise. Enterprise value also does not refer to the total value of the company's book assets. Due to the existence of goodwill, the actual market value of an enterprise usually exceeds The value of book assets. ^[1]

Corporation value

Enterprise value refers to the value of the enterprise itself, and is a market evaluation of the tangible and intangible assets of the enterprise. Enterprise value is different from profit. Profit is part of the market value of all assets of an enterprise. Enterprise value also does not refer to the total value of the company's book assets. Due to the existence of goodwill, the actual market value of an enterprise usually exceeds The value of book assets. ^[1]

Corporate value

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The most basic theoretical basis for carrying out corporate financial performance evaluation is

From the perspective of financial management, corporate value has many different manifestations--

Enterprise value refers to the value of a continuously operating enterprise. This enterprise value is completely different from the value of the enterprise at the time of liquidation. Relatively speaking, corporate value is dynamic, and

From

Does not reflect the cost of capital

For quite a long time, people have always believed that shareholders' investment is free and does not require costs like debt interest. Shareholder investment is also costly. When a company's profits are not enough to cover its cost of capital, the company is actually eroding shareholders' wealth. Enterprise value theory holds that the

There are many other criteria for a company's performance appraisal, but none are as comprehensive and scientific as corporate value standards.

1. Other standards can be short-term, while value must be long-term. Indicators such as average earnings per share, profit, and return on investment basically reflect what has happened in the enterprise. If these indicators are used as the evaluation criteria by enterprise managers, they usually lead to short-sighted behaviors, causing them to focus on

At present, almost all world-renowned investment banks use corporate value or value-related indicators as the main basis for evaluating enterprises and their stocks. The two most famous investment banks in the U.S.

The traditional "enterprise overall evaluation" is an evaluation of the assets and liabilities listed in the company's balance sheet. This evaluation mode can be called the "cost and summation model", which affects to some extent

1. Factors in accounting treatment directly affect

For non-listed companies, due to the lack of complete disclosure information, the measurement of corporate value cannot be reflected by their own stock prices like listed companies. It needs to be established by establishing certain assumptions and mathematical models.

Quantitative methods of corporate value are

Throughout the twentieth century, Chinese culture suffered continuous and systematic damage. Intellectuals are the mainstay, and the entire elite group cultivated by the modern education system is scrambling to devote themselves to this cause of self-destruction. Some use ideas and some use violence. Its evil results have been exposed in the most shocking form for the past half century.

The merchant community is also a victim of this cultural destruction: Chinese businessmen have achieved great success in the commercial field and dominated huge amounts of resources, but they failed to win the respect of the people: in the country, they cannot get the respect of the people, and they are even lower than officials. In the international business arena, you can't get the respect of your peers: you don't even have a dress with Chinese culture.

In fact, due to the lack of culture, there is generally a lack of stable value within Chinese companies, and thus lack of cohesion. Due to the lack of culture, if there have been a lot of rich people in the past three decades, but there is not much innovation in the corporate system worthy of attention, the contribution of Chinese businessmen to the progress of human business civilization is far less than that of British and American businessmen. Not even as good as Japanese businessmen. Due to the lack of culture, there are not many entrepreneurs with a sense of serving the society, and they lack innovation in this regard.

Even for themselves, businessmen should first invest in the cause of Chinese cultural rejuvenation. Such efforts can achieve the effect of establishing oneself and building others at the same time. The merchant will be the first beneficiary of this effort: you will step out of the materialist superstition and give your life a new meaning. Your soul will be fulfilled, in fact, you will have a life in your soul. And your cultural efforts will definitely bring you something that wealth cannot bring: immortality. ^[2]