Analysis Of The Intrinsic Value Of The Enterprise From The Perspective Of Investment Decisions

Value investment philosophy in a very long time to meet the trend of the international mainstream investment philosophy, especially in the wake of the financial crisis, the concept of value investing success once again be verified. From a historical point of view of foreign equity capital markets, value investing is currently being represented by the investor Warren Buffett used in actual investment decisions in the most extensive investment strategy. Another keen foreign "value investing" investment community concept master Graham believes that the target enterprises are worthy of being sought after by investors, simply because it has a high intrinsic value and can be expected. We know, businesses, the intrinsic value of the stock is difficult to accurately assess, it will be with the market interest rate changes or cash flow estimates of future changes and changes.Investors are very popular to take advantage of the value investment philosophy major investment decisions. Fund companies are always keen to invest those considered to have a long-term investment value, with a periodicity of payment of a stable dividend companies; investors are investment value of listed companies management capabilities and the ability to maintain sustainable profitability. Intrinsic value through the relationship itself on the financial data provided by the stock market simple analysis reveals the intrinsic value of the stock and corporate and investment decision-making process as the main basis. Because of the intrinsic value of the assessment results can be used as investment companies choose a main reference, this article will focus on solving the "How simple and accurate assessment of the intrinsic value of the enterprise," this issue. We know the impact factor evaluation value of listed companies and the intrinsic value of the stock itself, there are many, so far no one can use a financial model to accurately calculate the results of the assessment. So to solve this problem, we use the following three basic ideas:(1) simple prediction. In the capital investment process, people tend to pay more attention to those financial model esoteric and complex calculations, but ignore some simple methods and calculation flow model; in practice many cases it turns out, the use of more simple financial model and data forecast information is more effective. This includes future cash flows, the cost of capital and so on, so we use a simple method to predict thefinancial data, to enable enterprises to assess the intrinsic value of the program easier to understand.(2) simple index analysis. Read the target company's annual report data,data on the annual reports focus on a specific analysis, including analysis of financial indicators as well as by reducing the target company's financial data and financial indicators relevant practical operation, management and production, testing selected target business model meets the basic requirements.(3) simple choice. The market is always flooded with various sectors, each cycle stages of the strength of enterprises,we have to select those operations easy to understand, with a sustained long-term stable cash flows or the market has a certain concession companies. Including the most simple long-term cash flows, the discount rate easiest, most simple star enterprise, because only these companies can also improve the accuracy of prediction data, the results of the assessment have value.From the value of the intrinsic value of the investment and corporate philosophy of, respectively, the differences and clarify the relationship between corporate values and corporate intrinsic value, explained the assessment business, why businesses easier to make accurate investment decisions from a business point of view intrinsic value. Next article further analyzed using a reasonable method of value investing, and to assess the intrinsic value of the enterprise value as investors important basis for investment decisions; followed by a variety of common methods and models to assess the intrinsic value of the business to expand discussion and comparison their advantages and disadvantages. According to financial data estimating equation model derivation and eventually come to free cash flow method is the paper assesses corporate medical Dunlop intrinsic value most suitable methods, and specific theoretical analysis and application.