Evaluation And Empirical Research On The Value Of Listed Companies In China’s Catering Industry

With the development of Chinese economy, We slowly realized from the traditional industry to new industry, monetization to financialization. All of them are constantly changing people’s understanding of the whole economic system and the economic efficiency. So valuation of the company becomes especially important. In the past, large-scale, high-volume business is good business. But now, our understanding of corporate efficiency is clearly no longer stuck in the past. The business owners are now controlled the complete securitization assets and liabilities. All the liquidity and value of these resources are affected by financial markets. Preciously, many people focused the business analysis on some traditional accounting data. Such as the return on equity capital, earnings per share, etc. But now, more and more people are concerned about a number of factors such as cash flow, the stock market value, etc. With the gradual development of our capital markets, securities investment funds and social security funds are slowly becoming the backbone of the securities market. So, how to assess the intrinsic value of a company becomes the key point that needs every market participant to think about it.Chinais a large county of many delicious food, and has a total of10large-scale catering enterprises listed. The catering industry is one of Chinese traditional service industry, starting at the beginning of the opening era, then gradually expand. Finally, we have developed the current chain and brand strategy and have a constantly rapid development. Meanwhile, in the past few years, China got a rapid economic growth, so does the domestic consumer demand. Among them, a very important part of the reason is because of the rapid growth of GDP. We conclude from the historical data that the GDP growth and the growth of China’s catering industry in some way positively correlated. In terms of past five years, catering industry sales growth is significantly higher than the GDP growth rate. At the same time, the sales growth of catering industry has significantly exceeded the total consumption growth rate of China’s total retail sales of social. With the continuous development of this industry, it has played a significant positive role in promoting the economic development.In this paper, the author take the sample of Quanjude. And he uses comprehensive review of literature, theoretical and case analysis method applicable to companies listed on China’s catering industry valuation methods and assessment models were compared for the study. The beginning of the article deals with a research background and significance of the topic, the framework and overall research methods. Subsequent sections focuses on the most commonly used valuation methods and models to assess the theoretical analysis. In the last section the article came to the conclusion that the assessment model of free cash flow of the company which based on the income approach is more suitable for listed companies in China’s catering industry. In the last part, the article took the Quanjude as an example to describe the specific methods and steps of the model. Which further demonstrates the applicability of our free cash flow discount model for listed companies in China’s catering industry valuation.