The Evaluation Of Agricultural Listing Corporation Based On DCF And B-S Pricing Model

Commercial enterprises have achieved the efficient use of assets and rapiddevelopment through various means, such as mergers, acquisitions. This phenomenon setsoff a wave of the study of the financial management community assessment of their valuein21st century. Our country began a study on the assessment of the value of listedcompanies from the1990s. To the present, the valuation of the company is the importantpart of the corporate finance. However, there are a few literatures about the analysis ofdomestic agricultural listed companies’ value assessment. Our country is lack ofagricultural listed companies and they are lack of market competitiveness, but agricultureis the basic industry of a country which must be gotten the long-term development.Therefore, enterprises itself under the guidance of national policy development, shouldalso strengthen internal financial management to improve their own competitiveness. Forthis purpose, this article explores the valuation of agricultural enterprises and related theory,to promote rapid and healthy development of the agricultural enterprises.First of all, this article determines research methods and ideas, and discusses thedynamic of domestic and international valuation on the basis of the background andsignificance of the topic. The early study of the enterprise valuation started at foreigncountries and capital markets and the valuation method of these countries have been moremature, while the domestic research has not yet formed a system of systems, especiallyagricultural enterprise research which is more lack.Secondly, this article analyses the agricultural enterprise and industry developmentstatus starting from the concept of enterprise value. From the classical theory of value, thisarticle leads to several common evaluation methods. Combined with the characteristics ofthe agricultural enterprises, this article analyze their applicability, proposes that using adiscounted cash flow model with the combination of B-S pricing model to assess the valueof the agricultural companies is more reasonable. Thirdly, this article discusses the options theory. And combining with thecharacteristics of the agricultural enterprises, this paper amends on traditional valuationmethods and puts forward a valuation model suitable for agricultural enterprises.Finally, this paper selects Fengle Seed as the sample company to verify theapplicability of this model in agricultural listed companies through the empirical analysisof the company.