What is a listed company?
A listed company refers to shares issued after the State Council or authorized by the securities management department of the State Council approved the Stock Exchange limited liability company. The so-called non-listed companies is not listed its shares on the stock exchange transactions and no limited liability company. Co., Ltd. is a listed company, such companies to stock exchanges, in addition to be approved, but also must meet certain conditions. Co., Ltd. issued shares traded, also by the State Council securities regulatory agency authorized stock exchange in accordance with legal requirements and statutory procedures for approval of its listing application.
Listed Companies - Features
(1) A listed company is a corp. Co., Ltd. for non-listed companies, but it must be a listed company, Inc.;
(2) A listed company has to go through the approval of the competent government departments. In accordance with "Company Law" requirement, Ltd. a listed company must be authorized by the State Department of State for the Army or the securities regulatory approval, without approval, not to be listed.
(3) shares issued by listed companies on the stock exchange trading. Issued shares are not listed on Stock Exchange is not the stock.
Listed companies - the method of valuation
The first is the intrinsic value method, you can arrive at discounted future cash flows. If in the future to sustain an enterprise profitable, generate positive cash flow, then the mathematical model can be calculated by the present value of the company can be said that the intrinsic value method is relatively cautious valuation method.
The second method is the relative value method. Contrast to the same type of companies, in general, a comparison between the industry In addition to loss-making enterprises outside of the company's average price-earnings ratio or book value and other indicators, arrive at the present share price is overvalued. If the overall industry overestimated, then derived using this method of valuation that the stock is undervalued probably difficult to get a good return.
The third method is the value of mergers and acquisitions law, adopted in accordance with the current market conditions if the reset a business, need to invest the capital, where the need for current market share in corporate, brand, management, etc. are given a considerable premium.
