Methods Comparison And Empirical Research On Enterprise Value Assessment

Along with the vigorous development of the whole asset assessment industry, enterprise value assessment is also growing, it has now become the one of indispensable component in the asset appraisal industry. But in the current our country enterprise value evaluation field still has many defects which cannot be ignored, such as theories and methods of value evaluation directly using the western pattern, which are hindering the further development of enterprise value evaluation field in the economy and society.At the same time, the enterprise value assessment is playing a more and more important role in economic activity. Whether in the market transaction behavior like enterprise of mergers and acquisitions, restructuring, equity transfer, or corporate investment activities and daily management activities, all involved in the problem of the value of the enterprise, and timely evaluating the value of the enterprise becomes more important.In view of this, the paper gives a brief review on the research of theories impacting enterprise value assessment field, and simply introduces and comparatively analyses three types ofvalue evaluation methods in practice---Cost approach and income approach, market approach. Then the paper detaily introduces the selected the free cash flow discount method, analyses its advantages and predicts possible difficulty in the process of actual assessment.This paper selects the discounted free cash flow method, and takes a historical financial datas of a listed company, to calculate the firm’s history free cash flow. Then the paper forecasts the future free cash flow of the company combining with the industry and the company situation. According to the results of the above, using two phase model obtain the value of the company in the selected evaluation point by complete analysis and calculation. Finally, the paper calculates average price-to-book value of comparable companies, and uses one of relative value methods--PB, to get the value of the company in the same evaluation point. Through the comparison of two resluts, the paper trys to verify the accuracy and reliability of discounted free cash flow method in real assessment.