The Research On Enterprise’s Value Assessment Based On Discountedcash Flow

With increasingly deeper trade liberalization and globalization, moreperfectoperation means and more accuratevalue assessment data are needed inenterprises of our country. In addition, Chinese capital market is at an early stage ofdevelopment, the investment ideas are still fairly immature. As a necessary tool,enterprise value assessment is considered as an important link in the investmentanalysis process of outside investors. At the same time, it is also the management toolthat the internal managers usually use.At first, presentation of the background and significance aimed at the researchquestion of enterprise value assessment is made in this paper, thus tofully andcomprehensively review the research status of that question domestic and overseas;secondly, theories and methods of enterprise value assessment are basically researched,and it is indicated that discounted cash flow method is the most perfect, and of mostreasonable assessment results in the area of enterprise value assessment currently.Normative research method is mainly adopted in this paper, and the analytical methodof data set is also used while applying valuation model of free cash flow in enterprises.In Chapter Four, all the case data are from the financial statement of Qinghong SteelWebsite, and several data analytic methods are used when evaluating this enterprise.After that, theresults are inspect, thus to put forward deficiency and use notes, furtherto reflect on and explain how to realize better use of discounted cash flow method inour country.Finally, the conclusions are drawn as follows: valuation model of discounted freecash flow will constantly improve with the gradual perfection of the socialist marketeconomy in our country and highlightits advantages. Additionally, it will become themainstream approach among enterprise valuation methods, so as to provide a valid andeffective way to assessenterprise valuescientifically, reasonably and accurately.