Research on Equity Financing Valuation Model of Growth Enterprises Under Data Mining Technology

Abstract

Enterprise valuation is the core content of equity financing. Reasonable valuation helps to alleviate the conflict between investment and financing, and promote the enterprise to achieve leapfrog development. Based on the traditional valuation method of price to book ratio, this paper constructs a valuation model for growth enterprises to take equity financing for market development. This paper discusses the optimal valuation of an enterprise and its influencing factors under the game between investors and financiers. The valuation model in this paper establishes the game theory basis for the price to book ratio valuation method, and points out that the “most undervalued value” of an enterprise is not the “optimal valuation” of investors. It is found that there is a win-win cooperation space to ease the contradictions and conflicts between investment and financing parties. The optimal price to book ratio can form an incentive for enterprise managers with high growth, light assets or high industry price to book ratio, boost the rapid growth of enterprises and improve the return on investment of investors.