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The Selection Of Cash Flow Index In The Evaluation Of Enterprises

Posted on:2007-11-23Degree:MasterType:Thesis
Country:ChinaCandidate:Y WangFull Text:PDF
GTID:2179360182961018Subject:Accounting
Abstract/Summary:PDF Full Text Request
The inherent value, which is closely related to the cash flow t produced in the future, has to be considered in enterprise's essential. It's essential to define the cash flows exactly and analyze its influence facts in essential. Based on the existing evaluation models, this paper discussed the base of the evaluation theory, the definitions of cash flows and all kinds of models.The theoretical research part of the thesis primarily proposed the structure value theory, and then analyzed the relationship between value, price and utility, which led out the conception of equilibrium increment, and established the value evaluating system based on the equilibrium increment theory and the price model based on the fair value. Subsequently, the thesis displayed the theoretical grounds to support that cash flow can be used to reflect the value of firm, and analyzed the influential factors of various cash flow and the defects lied in the process of evaluating the value of firm by cash flow. Finally, the thesis conducted a comparative analysis on the evaluating model of the listed company' value based on different cash flow.In the empirical analysis, this paper advanced two hypotheses and selects the data of steel industry from year 2004 to 2005. Based on the regression analysis, we got the Beta, and then obtained the equity cost of public companies through model of CAPM. The random factors of cash flows were eliminated by the flowing technique and all kinds of cash flows were forecasted by a combined forecasting technique. And then we performed the evaluation process by the model of two stages. Through the above analysis, we draw the following conclusion: (1) the value of public companies, which is based on the operating cash flows, free cash flows and the total cash flows is correlative highly with the market value. (2) Compared with other cash flows, the value based on the total cash flows accorded with the market value more clearly.Finally we made an analysis of the empirical and given explanation combining the stock market.
Keywords/Search Tags:Theory of Structure Value, Equilibrium Increment Model, Evaluation Model, Cash Flows
PDF Full Text Request
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