The Research On Valuation Of The Enterprise Intrinsic Value

Valuations of the enterprise are the core of the decision of the merger between enterprises, restructuring of the corporation. Valuation plays a very important role in the enterprise management and makes Investors incease their wealth. Valuation is a reference value of assets on the non-assessment. The research on the valuation of the enterprise comes from practice of state-owned enterprise reform in China. It is imperfect in the theoretical system of the valuation. So it is very urgent in establishing China's own valuation system and model. The paper emphasises on the research on valuation of the enterprise intrinsic value.First, the paper make an introductory in DDM Model and DCF Model which are widely used in theorists and practitions, Real Optiongs Model and F-O Model which are the hot topic of the rasearch on valuation.Then, the paper make a comparision of DDM Model, DCF Model which are widely used in theorists and practitions and F-O Model which is regarded as the latest development since 1990s'on explaining the stock price. It was found that F-O Model be better than DDM Model and DCF Model in the side of explaining the stock price.In order to the practical application of F-O Model, the paper tries to improve the F-O Model by referencing the seniors'outcome. Through decomposing Residual Income to components and according to these components'time series properies, a F-O Model will be improved. In order to study the effect of the improvement, this paper use Haier's data to test the F-O improved Model. It was found that the improvement provided a good idea to improve F-O Model.Finally a conclusion has been drawn and a simple description of the limitations have taken on applying F-O Model to explain the price of the other sites on the stock and researching Real Opions Model.