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The Study On The Application Of Discounted Free Cash Flow Method In Entererprise Value Assessment

Posted on:2010-03-22Degree:MasterType:Thesis
Country:ChinaCandidate:J H DongFull Text:PDF
GTID:2189360272487880Subject:Business Administration
Abstract/Summary:PDF Full Text Request
The split share structure affects reasonableness of stock price estimation and stability of stock markets. The official launch of the pilot, indicating that this impact is expected to gradually resolve the long-term healthy development of China's securities market factors, which must promote the healthy development of securities markets and pave the way for the improvement of the pricing mechanism for the market. This proposed new requirements for the assessment of enterprise value. As we all know, there are a variety of valuation methods, and perfect for the market is discounted free cash flow method.This paper studies the application of discounted free cash flow value of China's enterprises. At present, there are many methods for discounted free cash flow, but are mostly confined to theory only. China's capital market is very new, discounted free cash flow method and can not copy the experience of foreign countries. The purpose of this paper is to analyze the applicability of discounted cash flow in China, targeted to make some reform initiatives, and take Wuliangye Yibin Co., Ltd as an example. This article is divided into five sections, each chapter reads as follows:The first part is the Introduction. Research background and significance, summarize relevant literature domestic and foreign enterprises, and explained the purpose, the framework and approach to the study.The second part is based on free cash flow valuation methods and to introduce several major valuation methods of value assessment, and explain the current status. Focus on the advantages of discounted free cash flow method as compared with other methods The third part, the concrete application of discounted free cash flow in our country. Analyze free cash flow discount method in the application of the applicability of our country; make improvements to the main problems in the application.The fourth part is the basic framework of discounted free cash flow valuation model and the parameters study. Summarize the Discounted free cash flowmodel make improvements by parameters, which provides a theoretical groundwork.The fifth part is the empirical research of free cash flow discounted method. Take December 31th, 2008 as baseline, the use of free cash flow discounted on the food industry - Wuliangye Yibin Co., Ltd. as an example the assessment of value. Forecast and evaluate the value by use of historical financial data and compare with the market value in order to confirm the validity and feasibility of measures for improvement. The sixth part is the conclusion. Confirm the feasibility of the discounted free cash flow and the inadequacies of this article. Note a number of other issues encountered in the application, and indicate the direction of further study.
Keywords/Search Tags:Enterprise value, Free cash flow, Discount rate, Assessment period
PDF Full Text Request
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