Improvement And Application Of Corporation Value Assessment Method Based On Cash Flow

Since the China’s economic growthrapidly, the GDP of our country is now ranked second in the world. At the same time, China’s capital market is also in constant development and improvement. Followed by the application of enterprise value assessment are increasingly frequent and increasingly wide range, such as the establishment of the company, enterprise restructuring, stock issuance and listing IPO, mergers, equity transfer, financing, litigation, bankruptcy and liquidation other aspects need to assess the fair value of the enterprise. Scientific and objective assess the value of the enterprise, is not only a subject of special attention and academic theory, but also practice a difficult operation. At present, the academic and research community on the theory valuation carried out long-term research, theory and learn from the mature West, it has now formed a relatively complete theoretical system, and business valuation practice operating in our country has been wide range of applications.About the world of business valuation theory is the most advanced model of discounted free cash, while free cash flow is in practice the most widely used, most robust indicators. Therefore, the SEC requires all listed companies in which the company’s financial statements must disclose the target.In this paper, we research the theoretical basis of the company’s valuation and the actual operation, especially scientific and objective enterprise value assessed by the amount of free cash flow. This article describes specific types of business valuation as well as the advantages and disadvantages, obtained by comparison of free cash flow is the best model, and the value assessed by Bright Dairy and free cash flow model. This article reads as follows:The first chapter is introduction which including research background, purpose and significance, review of researches on valuation of enterprises, research and innovation of this framework and this article.The second chapter research the relevant theories of business valuation, and make a detailed description and analysis of business valuation of concepts and methods of business valuation and get the answer that the discounted free cash flow model is the best choice.In the third chapter, the discounted free cash flow model, and the calculation formula of each parameter will be described in detail, and pointed out the theory and application of the defects and their defects repaired.The fourth chapter, the theory is applied to the front of Bright Dairy, free cash flow discounted using the improved model to assess the value of Bright Dairy. In a brief introduction to Bright Dairy, the annual report of the use of publicly available data, and thereby give an overall value of Bright Dairy.The fifth chapter drawn conclusions of this paper, affirmed the discounted free cash flow actually improved operability and model significance.