Enhance The Framework For Research, Based On An Enterprise Value Of The Dcf Valuation Model

In recent years, with the tremendous change of the enterprises' operating environment and the fast development of the modern science and technology, value management has become flourishing as a management flat environment roof. Value-based Management which is produced and promoted with the progress of capital market and system of modern enterprise, is not only a theoretical system but also a practical process, and becomes to be a chief business enterprise management mode. This mode puts the value of the enterprise into the core position among the principles of business management, concentrates on promoting the value of the whole enterprise, pay attention to the unification between external market value and internal economic value. Value-based Management is a kind of overall management thought. It involves every aspects of business administration, and it is to reform the management system of the enterprise in all directions. In foreign, the Value-based Management has already been recognized by numerous companies, and in domestic the tides of Value-based Management is raising, but if we want to make the Value-based Management to play a great role really in China's socialist market construction, there is a very long way to go.How to measure enterprise value? In which way can we find the value drivers and enhance the enterprise value? Is the enterprise strategy which is going to enhance the value really adding value to the firm, and how to carry out the strategy? These questions must be dealt with under the work of Value-based Management. The research of this paper is mostly inferred by inductive reasoning, beginning with the review of enterprise valuation theories and ideas of Value-based Management, by analyzing the inherent link between value assessment model and value management tools, particularly the analysis of the value drivers under the Discounted Cash Flow valuation model, constructs a strategy framework to promote the enterprise value based on the Discounted Cash Flow valuation model, and uses the management control concept of integrated Performance Management in order to realize the value creation strategy. The main purpose is to complete the model of firm value management by which the strategy is proposed and realized.The research of this paper, firstly defines the conception of the enterprise value, makes it clear that the target of the corporate is to maximize the value of the shareholders, reviews and expounds the enterprise valuation theories and ideas of Value-based Management, and sums up the internal relation between the valuation models and the company value enhancement; after that this paper categorizes the models of the Discounted Cash Flow valuation method and how to use them in practice; then on the analysis of the main parameters of the Discounted Cash Flow valuation model, expounded the corporate value drivers from four dimensionalities including free cash flow, expected growth , extending the period of high growth and the cost of capital, constructs a value enhancement framework of firm strategies based on the Discounted Cash Flow valuation model under the instruction of the principle of value correlated and the principle of integration between financing conception and operating conception, and classified those strategies; at last this paper describes the meaning and design principles of Integrated Performance Management ,supports to use the idea of IPM to carry out the strategies of firm value enhancement and pursue the maximization of shareholders' value; then under the analysis of value creation measurement and the framework of the Balanced Scorecard, tables a framework of enterprise value measurement system, which combines the value strategy of the Discounted Cash Flow valuation method and the designing conceptions of the Balanced Scorecard.