THE BUSINESS VALUATION ASSESMENT

Running Head: BUSINESS VALUATION
BUSINESS VALUATION
Name of the Student
Name of the University
Author Note

1BUSINESS VALUATION
Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Key Issues in Case.................................................................................................................2
Relation of Issues in Article with the Topic...........................................................................3
Evaluation of Main Issues in Case.........................................................................................3
Opinions relating to Case.......................................................................................................5
Conclusion..................................................................................................................................5
Reference....................................................................................................................................6

2BUSINESS VALUATION
Introduction
Business valuation is general process to determine economic value of the whole unit
of company or business. It is used for determining fair value of the business for various
reasons such as value of sales, establishing ownership of partner and even proceedings of
divorce. There are different valuation methods used by the practitioners of industry for
determining valuation of company (Trugman, 2016). Hence, this report aims to discuss key
issues in valuation of Towngas China Company Limited. Further, discussion will be on the
way issues in article relates to topic, evaluation of main issues of case and based on these
discussion, opinion will be given on case.
Discussion
Key Issues in Case
The key issues highlighted in the case provided is to find out whether share price of
the Towngas China Company Limited valued at HK$4.9 is based on its intrinsic value.
Towngas China Company Limited was known formerly as Panva Gas Holdings Limited,
which is one of the leading market player in businesses in the China. It is in the business of
gas utilities and is Hong Kind based company. This company has received lot of attention
from substantial movements of price on SEHK over last few months, decreasing lows of
HK$5.16 and increasing to high of HK$6.17 at one point of time. Some movements of share
price can give the investor better opportunity for entering into stock and buying potentially at
the lower price. Hence, the issue is whether current trading price HK$5.20 of Towngas China
is reflective of actual value of small cap or whether it is undervalued currently, providing
with opportunity for buying (St, 2020).