Based On Free Cash Flow Method Of The Origin Water Value Evaluation Research

Along with the further development of market economy in our country, our country will become the international capital into one of the major markets, both towards the international market, domestic enterprises and international capital into the domestic market, which will promote the domestic enterprise merger, acquisition and reorganization, equity trading between the vigorous development of the property right trading activities, such as the assessment of enterprise value as the property right transaction pricing basis and decision-making basis, gradually attention and recognition by the market.Articles based on free cash flow method are studied for company’s enterprise value assessment of the OriginWater. Free cash flow model is based on the historical financial data, combined with their own situation and future development prospects the future of the enterprise management situation, and then to predict the future cash flow. By combing the domestic and foreign enterprise value assessment theory and method, study the characteristics of a variety of evaluation model, highlight the advantage of free cash flow method in the evaluation, and think that the free cash flow method is adopted to OriginWater of the company’s value evaluation is appropriate. Under the conditions of sustainable development in OriginWater company, by a two-phase model, combined with the enterprise microscopic two historical financial statements, macro level value factors, future strategy and industry prospect, forecasts the OriginWater stage forecasting and sustainable free cash flow. Through the capital asset pricing model to measure the OriginWater company discount rate of 6.16%, by the method of free cash flow discount final evaluation results for 53.738 billion yuan. Article analyzed the result of the assessment, the OriginWater company’s market value of 40.674 billion yuan, compared with in this paper, evaluation value 53.738 billion yuan, worth 24.31% smaller than the assessment value, the OriginWater of the company’s market value is undervalued, at the same time also points out some deficiencies in this evaluation, such as: stage predictable revenue growth rate and sustainable free cash flow growth compounds higher subjective judgment, and the static of the weighted average cost of capital as the discount rate etc. Through the evaluation of OriginWater company in core competitive ability, human resources, strategic planning from three aspects, put forward the corresponding countermeasures of promoting enterprise value, such as: optimizing the allocation of resources, expand the core industry; Strengthen independent innovation, enhance the core competitiveness; Optimization of human resources. The paper summarizes the three conclusions: free cash flow method to the evaluation results of OriginWater; Free cash flow method to assess the predictive period and growth rate, discount rate, the three elements of sustainable growth rate is the key in the process of evaluation; Free cash flow for enterprise operators and managers, creditors and investors to provide a barometer of business in the future development.