| Often entrepreneurs and investors agree that companies value evaluation has dominant control of the merger and transaction, the decision-making base of investment, and the core of financial management. Nowadays, Discount Cash Flow, Economic Profit and Relative Value are the most commonly used methods in this field at home and abroad. Most value assessment methods e.g. Option Method, because of technical complexity and system info imperfection, merely discuss in theory and partly in application. DCF (Discount Cash Flow) makes it clear the factors that is closely related to Asset Effectiveness or its importance but also deals with the profitable ability of assets. DCF can also be applied to the corporations which have high or labile Financial Leverage Ratio. Therefore DCF has unparalleled superiority in Value Assessment. However, not only don't the method reflect Dynamic Cash Flow ,but also don't exclude the factors to change Cash Flow, it doesn't involve the point that Discount Rate is not unchangeable with Cash Flow fluctuation and relative adjustment of Financial Leverage.In this paper, the study objects on JiangLing etc.11 the listed corporations of motor industry, on the basis of finance reports, analyze the company by qualitative and quantitative method. Quantity, forecast relative date and inherent value was accounted and was compared with market value. Finally relativity of them was test by statistical tool. Aim on discovering value evaluating method in our country. At same time, base on value evaluate theories and methods of home and oversea, apply on DCF model and amends main parameter of Free Cash Flow and Discount Rate, forecasts life cycle of company reasonably, and eliminates the random factors to change Cash Flow by use of Mathematical Statistics, changes the traditional methods to assess enterprise value with static parameter. Test by T and F hypothetic. DCF model can be applied on value assessment of motor industry in China. |
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