The Research Of Listed Companies Valuation Based On DCF Model

With the consummating of market economy system and the capital market, enterprise value evaluation theory and technique are becoming the hotspot which people are concerning about more and more. The securities market has the history of several hundred years in western developed countries which take the USA as the head; it is also quite mature in those counties whose researchers on value evaluation have done perfectly both in the theory and practice. Because of implementing planned economy system in our country in the past, it was much later for our country to propose and apply the concept of enterprise value. Furthermore, we lack the accumulation on modern management idea. The theory and research method used in enterprise value appraisal are relatively lagged. Until now, the traditional estimate method based on historical data is still the main appraisal method in our country. Because of the uncertainties in parameter choosing and the particularities of Chinese markets, the method of Discounted Cash Flow (DCF) still has not put into real practices in China, although the method is kept being the mainstream in enterprise value assessing in the west.According to the classical theory of enterprise value evaluation, this article unifies actual situation of our country enterprises and the capital markets, analyzes the choice of parameter in DCF model, then researches the listed companies in our country, and tries to choose a system suitable for enterprise value assessing in China. The desired contribution is to make some beneficial explorations in formulating an enterprise value assessing system with Chinese characteristics.After consulting on many references on research theory, this article gets a general summary from the multitudinous viewpoints. According to the actual situation of financial balance sheets, the model parameter is revised, and the model which suits to the listed companies of our country is established. Under the basic presumptions of this method, in the range of the samples, this model can evaluate the value well. According to the principles of sample choice in statistics, we can infer the overall from the sample. In the author's opinion, it is an advisable method to definite the parameter. This model can assess the values of Chinese enterprises properly.