Research On Enterprise Evaluation Method For The Liquor Quoted Company

The development history of Chinese wine industry has several one thousand years. Wine has a special significance for our Chinese nation. Wine culture plays a special and important role in China five thousand years of history. Liquor-making industry is one of the important industry in China since ancient times.The study of it has very important practical significance. So, a liquor enterprise value assessment based on the financial statements and reports is not only good for enterprises to understand their operation and management status, but of special significance for the broad masses of investors.Based on the introduce of background and the research status at home and abroad, this paper analyzes the necessity of Liquor enterprise value assess, defines the liquor enterprise, finds the unique features of the white wine enterprise, and obtains the features of liquor enterprise value assessment. In this assay, relevant theory of enterprise value evaluation is introduced in detail, the enterprise valuation methods is compared and finally free cash flow model is chosen as the main method.This paper is divided into six chapters, each chapter follows:Chapter1ExordiumThis chapter first introduces the background, fully embodies the necessity of evaluating the value of listed companies. Then explores the significance of liquor evaluation of listed companies research from two aspects of theoretical and practical significance. At last, explains the research ideas and research framework.Chapter2Literature ReviewBecause there are no research of enterprise valuation methods aimed at liquor company, this paper tells current situation aboard, from Fisher’s theory to the MM theory, CAPM model and the Black-Scholes model.In our country, the research has more angels:Combination of qualitative and quantitative analysis; Combination with development trends and industry characteristics; using options theory in the advanced technology company; establishing enterprise quality assessment indicators; etc. But there are just two examples aimed at liquor company, using EVA and relative valuation methods.Chapter3Theoretical AnalysisAt first this chapter gives the definitions of related notions, including enterprise, enterprise value, enterprise value assessment. And then explores the different manifestations of enterprise value.The efficient market hypothesis provides theory basis for relative valuation method. The portfolio theory and CAPM model provide quantitative model for risk.In fact, the objective intrinsic value is not exist.Chapter4The method choice for the liquor listed enterprise value assessmentThis chapter first introduces the liquor industry, briefly describes its historical development and summarizes characteristics of liquor-making enterprises. Then judges the applicability of the various methods, determines the free cash flow method and the margin profit method for the liquor enterprise value assessment.Chapter5Case analysisThis chapter first introduces the reasons for the choice of Wuliangye group enterprise and the purpose of case analysis. Then it describes Wuliangye and its business situation. The enterprise value is carefully calculated in free cash flow method and the margin profit method.Chapter6The questions that need to pay attention during the choice of assessment methodsThis chapter mainly tells that during the choice of assessment methods, the value purpose and each enterprise’s different situation are very important. There’s no way for or be able to accurately judge the enterprise value completely.This paper contains three main contributions:1. Through comparison of classic foreign enterprise value assessment theory and widely used method, combining liquor enterprise features, pointing out that the free cash flow method is suitable for liquor enterprise value assessment.2. Taking Wuliangye group enterprise as a case and using the free cash flow method to assess its value. 3. Using the margin profit method to assess Wuliangye group enterprise’s value and proving the rationality of the free cash flow method.In this assay, the author Combines with the actual liquor enterprises, summarizes the analysis enterprise value assessment methods, putting forward the free cash flow model applied in Chinese liquor enterprise value evaluation, and putting the enterprise culture environment into account. It also plays a positive role in promoting concrete application in enterprise value assessment in China, and it is of great guiding significance to investors in liquor-making industry.