The Application Of FCFF Model In Quoted Retail Business Valuation

With the increasing rapid development of the current economic and the increasing activities of the enterprise, more and more small enterprises rise abruptly, industry competition is becoming more intense, enterprise merger and acquisition(M & A) are common, transaction behaviors not only reflected between person and person, but also in the enterprises. In this booming economy era, more and more people realize the importance of professional appraisal work. From the establishment of new enterprise development to the growing acquisition of other competitors, and then gradually weakened until the bankruptcy liquidation,asset evaluation plays a very important role in all of these activities. Corporate value is different from the value of the goods, the content it contains is very rich.By many factors diversity, we have to consider not only the role of tangible assets, but also the intangible assets. The magnitude of corporate value is very high, the difference between an iota hack away. Therefore, we must assess the enterprise value through professional assessment, professional staff carefully carries on the investigation evaluation.In the retail enterprises have transformed, intensifying competition between the retail business, mutual investment and economic cooperation under the background, above the city retail industry as the enterprise value evaluation the starting point of the research methods, selected Suning Commerce Group Co., Ltd as the research object, discounted FCFF(free cash flow of firm) method of enterprise value practical evaluation methods of operation and practice were case studies, in order to in the actual operation to find out the evaluation difficulty and solution, familiar with the assessment program, exercise evaluation skills, to find the differences in the theory and application of lies, and summarizes the problems that should be paid attention to in the practical application.This paper is divided into five parts, the first part is the introduction, first on the aim and significance of the research project in detail; and then explain the research content at home and abroad on business valuation, to each researcher in the application and improvement of FCFF in the process of discounted views summarized statements, looking for their breakthrough research; the content and method of this study is finally described, and pointed out the shortcomings of the possible innovations and research. The second part is the definition, main definition of enterprise value and its assessment did explain to the three kinds of evaluation methods are introduced and the applicability, and describes the application of FCFF discount law rules. The third part is the evaluation of the introduction of the background, through the introduction of evaluated enterprise itself, management status, financial situation, development prospects and direction and the development of the industry. Situation, grasp the basic situation of enterprises and thus expand the prediction of its future evaluation indexes. The fourth part is the case study on Su ningyun as a case to assess enterprise value. The theoretical framework in the classical method, a comprehensive analysis of the macro environment, profitability and development factors, the free cash business in the future five years, the discount rate of specific indicators were predicted and calculated the final assessment, and then compared with the market value of the stock in the enterprise value evaluation premium 10%. fifth part is the conclusion of this paper, first before the actual evaluation value premium is analyzed from two aspects of the enterprise’s own situation and method of application then summarized the theory and practice, the differences in the evaluation work and how to reduce the evaluation results of reasonable accuracy differences, enhance the assessment results.The enterprise value evaluation has always been the focus and difficulty of the evaluation work, objective evaluation of different types of enterprises, applicable to different evaluation methods. Therefore, how to do the evaluation, the evaluation method and the results are more reliable, the theory and practice better combined, is we continue to consider. This paper hopes to use the familiar with the enterprise discounted free cash flow model to study the case, cultivate their ability of practice. In this process, to find and solve problems, from the shackles of textbooks, assessment methods to practice, to explore the scientific theory of the application of the evaluation method, we learned to continue to use to. To use, so as to make our evaluation results more accurate and reliable.