Free Cash Flow Model Chuangshi Company's Valuation Based Improvement

With the growing influence of globalization, China's socialist market economy continues to develop, the development of the communication industry showed rapid development trend, the rapid development of mobile value-added services, mobile value-added behavior and mergers and acquisitions among small company more and more. Mergers and acquisitions and other acts of investors and operators need to know the accurate and reasonable assessment of the value of the company being evaluated. Otherwise, losses may occur. Therefore, business valuation accuracy and reasonableness of whether the company's managers or investors plays a vital role.Based on this background, this paper summarized the research enterprise valuation research status and free cash flow model of a comprehensive review; on this basis, and then the theories and methods of business'valuation were studied and analyzed, and pointed out that free cash flow discount Online method is the best in the field of business valuation, we practice the most widely used method. Secondly, the use of case analysis, the company's enterprise value creation assessment analysis, points out the shortcomings in the process of business valuation exist and cause analysis, providing recommendations for improvement to pave the way for the later; then, lack of set forth above place recommendations for improvement, re-forecast the future free cash flows, the creation of the company's future cash flow forecasting more objective and reasonable; to redefine the market risk premium and firm-specific risk assessment results to improve the accuracy, authenticity. Finally, a simple analysis of the reasonableness of the revised assessment results.Business Valuation Process By analyzing the case of companies, the process proposed in correcting problems and reduce the subjectivity of the assessment results to improve the rationality of evaluation results, expectations of small company, especially the value of mobile value-added assessments of small company more suggestions.