The Securities Porfolio Investment Based On Free Cash Flow

The concept Free Cash Flow has put forward and brought to bear in practice for decade, but it has not been paid enough attention for financial theory and practice finance. By decrypting concept and analyzing composition concerned, financial layer management, financial policy, budget system, and their mutual relationship under corporation management framework can be well comprehend . The dissertation show on the main line of modern financial operating system on Free Cash Flow, and make the next step pick up the particular thought about financial management serving for the maximal corporation value. Financial statement analysis is the center of fundamental analysis. This article is a case which makes use of fundamental analysis technology to evaluate the securities portfolio investment. Basing on adjusting financial statement analysis and basic financial ratio, the author designed for the corporation value evaluation based on handhold computing Free Cash Flow.By introducing free cash flow Multiplier, free cash flow debt ratio, and integrating operating cash flow, market surplus ratio, market net ratio, low financial lever, the author constructed the securities portfolio investment of correlation index. The content validates that stock market have a effect on low market surplus ration, low market net ratio and low free cash flows multiplier. The yield ratio of portfolio investment can evidently improved by introducing free cash flows multiplier to compare with index.