The Research Of Agricultural Listed Companies's Value Assessment Based On Discounted Free Cash Flow Method

Since the concept of free cash flow has been proposed already several decades, it is the company's valuation has a significant role, can fully reflect the company's operating performance and assess the potential long-term development of listed companies. However, free cash flow forecasting method than other existing methods of complexity and the assumption of the stringent nature of its use in financial theory and empirical research also less. This article aims to start from the analysis of free cash flow theory, based on objective financial data, the use of free cash flow discount model to assess the value of listed companies in agriculture research.This paper reviews the domestic and international business valuation theory and assessment research literature that discounted cash flow method is based on business valuation theory most solid way. The free cash flow compared with other indicators of cash flow, to avoid manipulation of profits, more objective indicators, a more comprehensive consideration the overall operational state of the enterprise edge.Thus, this paper discounted free cash flow theory based on the assessment of enterprise value, according to the selection of the 12 samples of agricultural listed companies, accounting statements with actual performance data and market situation of the corporate value of the sample were evaluated.The results show that:(1)the intrinsic value of companies with market capitalization of agriculture does not match the listed company's share capital because of the small scale; (2) the poor condition of listed agricultural companies are reasons for the low value of the company; (3)the selection operator better business conditions for its further empirical research results show that in the case of free cash flow discount model of equity market value forecast for better usability. The value of listed companies for agricultural assessment reflected the problem, a targetedSuggestions:(1)to establish a mature and effective market mechanisms;(2) sound and comprehensive legal system;(3)set up to maximize enterprise value-oriented philosophy; (4) strengthen control and management of cash flow; (5) optimization liquidity management.