Research On China’s Diary Listed Company Enternrise Value Evaluation

All business activities are based on enterprise value evaluation which assess the effect of the business operation and management. At present, enterprise value evaluation has been widely used on investment decisions, mergers, acquisitions, credit management and business management. However, the influence of such factors as the enterprise value evaluation result is influenced by the authenticity of accounting information, such as the adjustment of the accounting policies and accounting methods, which in turn affect the scientific and effective decision. Therefore, how to select the applicable and effective methods of value evaluation has become increasingly important and realistic. Firstly, the article introduced the enterprise value assessment theory. Combining the situation of the dairy industry and companies, this article takes the best fit method which is free cash flow discount model to make the enterprise value evaluation. Based on the three phases assess the value of the enterprise, the article draw the following conclusions:(1) The free cash flow discount method is suitable for the enterprise value of listed companies.(2) Verify the rationality of the company’s free cash flow discount method.(3) The weighted cost of capital will effect the enterprise value more than sustainable growth rate.