K Company Value Evaluation Research Based On Free Cash Flow

Along with our country socialist modernization construction of the development of market economy and the continuous improvement of the property market, the company as a whole on the market for related business, which makes us realize that the company itself as a commodity should be how to assess the importance of the value of the company. In today’s fierce market competition, the company should be how to realize the maximization of the value of its own for development, which requires companies must constantly seek to improve the company in the market value of the path. Because the company itself can be used as a special kind of commodity can be traded, this makes the company buyers can be purchased to obtain the return on investment. Based on this, enable us to know how the company should be to assess the importance of its own value. In this paper, the company value evaluation research status at home and abroad, elaborates the background and significance, proposed in this paper, the research train of thought, after comparing all kinds of company value assessment methods, points out that the free cash flow discount method evaluation of the value of the company is the most reasonable and scientific. K company on the basis of relevant environmental analysis, pointed out that the company meet the free cash flow discount method application condition, and combined with the analysis of relevant historical data changes, the target company reasonable predict future related data, the company in accordance with the to assess the value of the company of the target company. Chapter of this paper is as follows:The first chapter, introduction. The value of the company’s research significance, research status at home and abroad, research ideas and methods, research, innovation and deficiency.The second chapter, related theory basis for the value of the company. First introduces the concept of the value of the company defined, the value of the company assess the various methods and make mutual comparison, points out the superiority of the free cash flow method, and puts forward improvement of free cash flow method.The third chapter, K company environmental analysis. Through the qualitative analysis on the K company environment, forecasts the development prospects of the company, and points out that the company is a growth company, can meet the requirements of the free cash flow method.The fourth chapter, K company valuation based on free cash flow. To use the improved method of free cash flow K company valuation analysis, and selects the two-stage growth model to evaluate the value of the company of the company. And then to evaluate the value of the result.The fifth chapter, the research conclusion and prospect. Through the above analysis, this paper concludes that free cash flow method is in the company value evaluation method is optimal, and can be successfully applied to the company value evaluation in our country, and I believe the future will be widely used. Also appear in the process of evaluation of insufficient puts forward some prospects.Through this article analysis conclusion is improved after the free cash flow discount method is scientific, and can be successfully applied to the companies in our country, the evaluation result has high reference verification, can provide a reference basis for company managers and relevant investors.