DEMAND TO DETERMINE THE CORPORATE VALUE IN THE CURRENTLY

In the market economy, the need to evaluate and determine the value of this commodity is a completely natural requirement. In macroeconomic management as well as in business administration, information about enterprise value is always needed.

Corporate value is the concern of legal entities and natural persons whose interests are directly related to the value of the enterprise which is derived mainly from management requirements and transactions.

Enterprise valuation comes from the requirements of business acquisition, merger, consolidation or division. This type of transaction takes place regularly and is common in the market mechanism, reflecting the need for direct investment in production and business, the need to finance growth and development by other factors. external factors, in order to enhance viability in an environment of free competition. In order to conduct such transactions, it is required to have a wide-ranging assessment of the factors affecting the business, in which the value of the enterprise is a decisive factor, the direct basis for people to negotiate with each other in the process of buying, selling, merging, amalgamating, and subdividing businesses.

Enterprise value is an important type of information for managers to analyze and evaluate before making business and financial decisions related to the assessed business. The basic content of corporate financial management, after all, is to increase the value of the enterprise. Enterprise value is a reflection of the aggregate capacity, viability and development of an enterprise. Therefore, based on this, business managers can see the competitiveness of their own business and other businesses. Therefore, enterprise value serves as an appropriate basis, the basis for making business and financial decisions… in the right way.

From the perspective of investors, suppliers, information on business value gives people an overall assessment of business reputation, financial capacity and credit position from which to base a business. make decisions about investing, financing or continuing to provide credit to the business.

Enterprise value is an important information in macroeconomic management: The prices of securities are determined by the real value of enterprises whose securities are traded on the market. Therefore, in terms of macro management, information on enterprise value is an important basis for policy makers, organizations and securities business associations to assess the stability of the market. , identifying the phenomenon of speculation, manipulating thijtruowfng, acquiring control of enterprises ... so that appropriate regulatory policies can be made. In addition, in the process of transforming economic management mechanism, enterprise valuation is also an important step to reform SOEs such as: equitization, merger, consolidation or assignment, sale and lease. rent.