A Comparative Study of Valuation and Value Drivers in the Auto Lamp Industry: Two Cases of Auto Lamp Companies

• Published in: 2016 10th International Conference on Innovative Mobile and Internet Services in Ubiquitous Computing (IMIS) pp. 556 - 562
• Main Authors: Chien-Wen Lai, Kuei-Yuan Wang, Tzu-Yu Lin
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01.07.2016
• Subjects: business valuation; Cost accounting; discounted cash flow method (DCF); enterprise value; Finance; Forecasting; market value added (MVA); Mobile communication; Ubiquitous computing; value driver; Web and internet services
• DOI: 10.1109/IMIS.2016.120

This study adopted the methods of Market Approach and Income Approach to assess enterprise value of two samples in auto-lamp industry. Financial data from 2008 to 2013 was utilized. The evaluation based date was 31 December 2013. Sensitivity Analysis Method was also used to comprehend the effect of each value driver to the promotion of enterprise value. The findings of this study were as follows: (1) The average of the evaluation value was slightly different from the market value of the evaluation based date, yet to average out multi assessments could prevent the circumstances of overestimated or underestimated situation while single assessment method was conducted, (2) The key value drivers affect Depo Auto Lamp Co. Ltd. stockholders' equity were listed in sequence of importance: Weighted Average Cost of Capital, Sales Growth Rate and Capital Expenditure Rate, (3) The key value drivers affect TYC Brother Industrial Co. Ltd. were listed in order of importance: the Capital Expenditure Rate, R&D Expenses Rate, and Gross Profit Ratio.