| Today, with the rapid development of economy, the market competition isbecoming more and more competitive, and the enterprise value has gained moreattention by managers and shareholders of the company. The company valuation is ajudge and estimation process and it’s also an comprehensive valuation, which ismainly used for Mergers, Acquisitions, Reconstruction and Equity transfer. Accurateevaluation of a company’s true value and whether a company is worth investing havebecome thepremier concern of all entrepreneurs and venture capitalists.The thesis shall discuss the evaluation of Heling Steeel Company’s value withcase studies qualitatively and quantitatively. Macroscopic economic is firstly studiedwith comparison of the competitiveness of steel industry in domestic markets and thedevelopent in the future. Secondly, based on the company’s basic situation, this thesisanalysis its competitive strengths, weaknesses, potential crises and opportunities fordevelopment quantitatively. Then, after comparing the differences between threelikely valuation models, the thesis fanally chose the DCF (Discounted Cash Flow)model to evaluate real value of the company. When valuing the company, we analysisthe various factors that impact Heling Steel Company’s revenue growth in future, andbase on financial data, this thesis uses moving average to reduce the influence whichbrings by macroscopic economic, from which we can get the growth rate of futurerevenue; then in order to forecast the discount rate, we build CAPM (The capital assetpricing model). Finally, we gain the result that value of Heling Steel Company`sequity through DCF model. In addition, this paper compares the market value with theappraised value, analyzes reasons for the differences between the two. Taking themacroenvironment and the assessment error cases into accout, the assessed value isreasonable. Then we make some suggestions based on the assessment process, andwish this evaluation can make some contribution to the enterprise’s management. |
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