Value Of The Company Based On Cash Flow Analysis

Value cognition is the foundation and premise of all economy and management behaviors. Therefore, to improve the value has already been the target of modern enterprises operation. There are at least two factors increasing the difficulties of value cognition in market economy. One is that not only visible entity has value, but also invisible thing has value. The other is that the value of both visible assets and invisible assets is changing all the time. The purpose of enterprise evaluation research is to solve these difficulties in value cognition, and to evaluate some parts or the whole of enterprise well and truly.It is proved by many theories and practices that the value of enterprise lies on the ability it creating cash flow in the future. This is the base point of this paper. The first part of this paper introduces some basic concepts of Cash Flow Table. The second part introduces general methods of Cash Flow analysis. In the third part, the steps and main points of the evaluation method based on Cash Flow are discussed. In the forth part, as an example, Yibin Wuliangye Cojtd is evaluated using this method. In the fifth part an investment strategy based on Cash Flow is brought forward and testified by some facts.