Corporation Value Assessment Based On Free Cash Flow

Nowadays, the development of China’s printing industry has step into a new era. The main characteristics of the new era printing industry are following categories: the internal structure optimization of enterprises, the higher productivity and the healthy competition formation among the enterprises. All of those would promote the enterprise value. Shen Zhen Jin Jia Co., LTD. is the leading company in the printing industry. The epitaxial method is its main developing method. It means that the company could learn the business experiment and enlarge the market share by mercerizing the smaller companies and concentrating capital from Subsidiary. The method would promote the investment value of the company’s rapidly. Therefore, in order to providing the more professional data to investors and some important experiment to other companies, reassessing this company’s value is very meaningful.In order to get the better assess for this company’s business investment value, this paper has extracted the implementation guidelines and the operation methods from many domestic and overseas excellent companies. The first step is to sort the theory and system methods of the valuation assessment, and the next step is to compare and analyze the applicability of the assessment model.After that, on the actual situation of Jin Jia, this paper has chosen the free cash flow model to assess the company’s value. But the free cash flow model has be found exist some imperfections because this model had been mainly influencedby subjective factors those would made the discount rate too large. Above all of those, the free cash flow model is not suitable to assess all companies’ business value. So in the latest chapter this paper has provide a assessment model under the dynamic characteristics assumptions which included the discount rate assumptions. In practice, this model has been proven workable and could get the accurate solution by comparing the other companies references.When assessing the company’s value, the public relevant information and the free cash flow model has been used in the progress. By the assessing and analyzing, it could be found that the business development of this enterprise has a good trend. It has been certainly proved that the free cash flow model had a good operability and the improved model was meaningful.