Evaluation And Management Of The Value Of The MS Company Based On Free Cash Flow Method

In recent years,great changes have taken place in the structure of China's securities market,the size and the number of listed companies have achieved significant growth.With the continuous development and improvement of capital marke,the company management practice target also gradually changed from profit maximization to value maximization,management practice and maximize the value of enterprise need to further coordination and unity.The value of the company management is the product of the market mechanism,emphasize the ultimate goal of company management behavior is the enterprise value maximization,the foothold of value management is through the establishment of enterprise value evaluation model,thus effective evaluation and guidance of the business strategy,investment and financing decisions,such as merger,acquisition and reorganization,performance appraisal management behavior.The premise of enterprise value management is to evaluate the value of the enterprise.Enterprise value evaluation(i.e.fair market value)is to analyze and measure the intrinsic value of a business or a business unit,and provide relevant information to help investors and management authorities to improve decision-making and an important means of rational investment.Whether it is standing in the investors or in the management authorities,enterprise value evaluation research has important practical significance.Based on the reality of the urgent requirements above on,this paper has screened sorted the classical theory of enterprise valuation over the years,On the basis of China's national conditions,we have studied and compared the methods of enterprise value evaluation which have been applied before or now,emphatically discusses the free cash flow model(FCFF),used the model to evaluate MS company.And based on this,analyze the value management of the company,hoping to provide a reference for the company in the practice of value management.