Research On Value Of The Real East Enterprises Base On FCFF

In recent years, the assessment of the value of the real estate business to become thefocus of discussion, the reason is that since the1990s, the progressive development of thereal estate business, play an important role in the process of improving the nationaleconomy, and become a pillar industry.The state introduced a variety of macro and micro policies to regulate the real estatemarket, at the same time, the value of real estate on their own for their own developmentprospects and the impact on the market also put more attention, which is not onlyconducive to the long-term development of enterprises, but also get the best solutioncompetitiveness. The main significance of the performance of the real estate businessvaluation for the three aspects of the enterprise, improve enterprise management.For investors, improve its investment direction; industry, the strategy and theoptimization of business scale in favor of the real estate market the steady development.About domestic and valuation methods sum up, there are three main methods, the incomeapproach, the cost approach and market approach.Income approach and market approach focuses on discounted future earnings, the valueof the initial investment cost method focuses on assets, cost has been gradually replacedby the income approach and the market approach. However, in assessing the value of thereal estate business method of choice has been controversial, the market approach, incomeapproach and its derivative models, which method is best suited to have been somewhatcontroversial.In this paper, the choice of the real estate business valuation methods adopted normativeresearch, qualitative analysis and case analysis to assess the value of existing corporateapproach to the theoretical premise, combined with the economic environment in whichthe real estate industry, derived by comparing the relative fit assessment methods, namelythe income approach.First, the method of valuation business valuation theory and the real estate industry, aliterature review of the system. Secondly, the characteristics of the real estate business,the environment and economic development prospects which were analyzed. Again,discussed three main business valuation methods, and the cost approach, income approach and market approach and to evaluate the advantages and disadvantages of various methodsand applicability in the real estate industry, real estate industry suitable method is elected,the income approach.Then, in several models in the income approach, through comparative analysis, to buildthe most suitable theoretical models.Finally, select a typical real estate developmentcompany Vanke as a case study, the use of valuation models constructed above casestudies, and finally concluded, to provide favorable information to investors and theenterprises themselves.