The Research Of Enterprise's Value Assessment Based On Discounted Free Cash Flow Method

Nowadays the research on valuation of modern enterprises is of momentous current and theoretical significance in the process of deepening enterprise reform in China.Enterprise valuation is not only a necessary tool for outside investors to analyze investment,but also a means for managers inside enterprises to use.Free cash flow is created from enterprises operation activities,which perfectly describes the long term development ability on measuring effect of investment and operation.About enterprise valuation,in the western developed countries it have done profound research on value assessment theory and established relatively ideal assessment system.In China,although there are many thorough theories,complete case analysis is deficient.This article makes empirical research on this method by using a complete case-ShuangHui Co.Ltd based on the existing theory.The main content of the dissertation is as follow:Part1.Discuss the reason for application of discounted free cash flow method and significance of enterprise valuation,and then present the purpose,main content and study method.Part2.Introduce several valuation approaches mainly applied in practice, present the application value of discounted free cash flow method by analyzing current situation of valuation theory,which provide necessary theory basis and analysis premises.Part3.Discuss in detail about discounted free cash flow method, lid a solid foundation for empirical study.Part4.Makes empirical research on application of discounted free cash flow method by using a typical case-ShuangHui Co. Ltd,and verifies the valuation result based on the market value. Part5.Conclusion.Ensure the manipulability of discounted free cash flow method, summarize the deficiency lies in the process of application and propose method for improvement.