Evaluation Of Huangshan Tourism Development Co., Ltd. Value Based On Free Cash Flow Discount Method

With the rapid development of the capital market of today, assessment of the value is in the use of more and more frequent in outbound investment, the financial management, mergers and acquisitions. The value assessment of enterprises becomes the focus of the assessment theory and practice. Value evaluation can not only provide reasonable pricing for property right transactions, but also provide the reference for the company value management.In this paper, through the integrated use theories of the Assets Evaluation and Finance Management, to research the discounted free cash flow method of enterprise value assessment. Using discounted free cash flow method to value Huangshan Tourism Development Co., Ltd. will be assessed. The content of this paper consists of five parts: the first part is the introduction. Put forward the research subject, introduces the research background of the research, and explains the significance of the research topic and the literature review at home and abroad. The second part is the enterprise value evaluation theory. The paper introduces the relevant theoretical knowledge of enterprise value assessment. The third part is the evaluation of enterprise value based on free cash flow. Firstly, the definition and calculation formula of free cash flow, and then introduces the method of determining the discount rate, and finally introduces the discounted free cash flow method in the evaluation of the two stage model of enterprise value. The fourth part is a case study, selection Huangshan Tourism Development Co., Ltd. as the object of study. Analysis of the macro environment of the company and the industry environment, combined with the basic situation of Huangshan Tourism and planning for its development, and make qualitative analysis and competitive advantage, based on the announced financial data of the company in 2007-2014, carries on the forecast to the future free cash flow by the percentage of sales method to obtain the value of digital the company, and to verify its accuracy. The fifth part is the research conclusion and research prospect. First, put forward the conclusion of this paper, and then points out the deficiencies in the research process, and finally puts forward some prospects.