Based On Free Cash Flow Method Of Dashang Group In The Enterprise Value Evaluation

Since the twenty-first Century, with the rapid development of the capital market and the increasinglyperfect, enterprise value assessment plays in modern economic activities a more important role. In thecapital market of western developed countries, enterprise value evaluation has formed a completetheoretical system, with the support of the enterprise value evaluation method and evaluation model, iswidely applied in such as merger, purchase, sale, restructuring, stock management, joint venture, guaranteereal economic activities. With the continuous development of China’s market economy, China’s capitalmarket has gradually become active again, more and more economic activities participants added to thecapital market. Value assessment theory of enterprise of our country also gradually began to develop, moreand more people began to use value assessment theory focuses on the enterprises in the market economy inChina, and launched a series of research on the theory system.Value assessment theory of our country enterprise although late, but the rapid development hasbenefited from China’s economic, and the reference to foreign mature theory, theory system in thecontinuous improvement and rich in assessment of China’s enterprise value, has been widely applied inChina’s enterprise value evaluation. Through a series of research on enterprise value assessment theory andapplication of value assessment theory in our country has formed a set of full system adapted to marketeconomy in our country. And for the development of market economy in our country has made an indeliblecontribution.The enterprise value from different sides of the display value is not the same, the intrinsic value of theenterprise in a certain extent, reflect the value of enterprises is more comprehensive, more can reflect thecompany’s future profitability, it is of economic significance. Therefore, assessment of the value of thebusiness more is to assess the intrinsic value of enterprises.This paper studies on the assessment of the enterprise value method, first to the enterprise valueconnotation are briefly introduced, and the intrinsic value of the enterprise as the research object. In orderto analyze the intrinsic value of the enterprise, we choose the free cash flow method that is widely used,methods to assess the value of mature theory, a series of related theory and the method involved, as well as the method in the practical application of the advantages and problems of emphasis introduced. Both in thechoice of cases, this paper selects Dashang Group, the object of study that is closely linked with people’sliving retail enterprises as the enterprise value assessment, and use the free cash flow method to assess theintrinsic value of the Dashang Group.Process to assess the value of the Dashang Group to use free cash flow method, we through thesummary and analysis of the financial data of the enterprise, make our situation, the development of theenterprise business strategy, capital structure has a better understanding, and based on the Dashang Groupfuture development for more objective forecast. By assessing the intrinsic value of the Dashang Group, onone hand we can analyze the influence factors of enterprise value, and these factors in order to improve theDashang Group enterprise value improvements. On the other hand, to assess the value of Dashang Groupthe typical retail enterprises, provide a good reference for the free cash flow method applied in the value ofChina’s enterprises. To assess the value of enterprises, not only help enterprises to enhance their ownvalue,but also can make enterprise value evaluation theory to serve the development of China’s marketeconomy.