The Discounted Cash Flow Model Applied Research In The Management Of Small And Medium-sized Private Enterprises

How to improve the management of medium and small private firms has become a more popular topic in China .In this article, we introduce DCF models which is the mainstream of company valuing methods nowadays, in the management fields of medium and small private firms. Applying of models in the management fields can help medium and small private firms deeply dig management information , effectively integrate these information, and process it .These information is related to sales control , budget control, risk control and other factors which drive medium and small private firms values enhancing . With applying the model step by step, every department of medium and small private firms will benefit from the information produced in the course .When owner , managers and other employees understand the perceived impact of these factors,they will comunicate more efficiently .Then , with getting their individual benefit to be related to firms values enhancing , medium and small private firms will affect their expectations , interaction and outcomes .So , applying of the model in the management fields of medium and small private firms is going to create conditions under which the owners , managers and other employees are able to make decision scientifically ,to interact in mutually beneficial ways ,and then largely promotes the management of medium and small private firms.