Research On Z Department Company's Enterprise Value Appraisal And Driving Factors

At present,the economy of our country experiences a new normal period of structural adjustment and development transformation,making economy slow down.Retail industry is affected by the economic downturn and fierce market competition,and it is experiencing a severe condition now.In the meanwhile,the boost of E-commerce has a great impact on traditional marketing pattern and distribution channel.In 2015,the national online sales account for 12.9% of the total retail sales of social consumption.Substantial economy faces with reform and challenges of the consumption pattern and technological advance.Additionally,with the development of China's economy,the operation and management system in corporation have changed and then managers have paid more attention to the enterprise value management.How to enhance enterprise's value becomes the key to an enterprise's financial management and strategy management.Z department store,a traditional sales department store,is under the economic depression and faces with a revolution of new consumption pattern and business model,but the result of its transformation is unsatisfactory.How can managers make rational decisions to help corporations create more enterprise's value under an economic depression? They should with the help of enterprise value management method.Therefore,evaluating the value of Z department store,finding key driving factors that influence enterprise's value and putting forward suggestions to increase its corporation value are the most effective ways to help Z department store overcome the dilemma.This thesis bases on the related theories of enterprise value.First of all,it analyzes the developmental condition of the target enterprise,Z department store and the sales industry to reveal the current status of development features of the target company and the industry on a whole.Then,it uses the method,free cash flow method,to evaluate the value of Z department store and selects another two companies,Nanjing Xinjiekou Department Store Co.,Ltd.(NJXB)and Guangzhou Friendship Group Co.,Ltd.(GZYY)as comparing companies in the same time.The thesis uses the same method to evaluate their enterprise value.It concluds that the rank of three companies' enterprise value from high to low is: NJXB,Z department store and GZYY.Next,according to the company value evaluation results,this thesis analyzes the historical data of these three companies and compares the results with the industry data.In addition,it analyzes the influence of each factor on the company's value and finds out the key driving factors are sales income,sales cost and cost of capital.Finally,following the thorough analysis of these three driving factors,strategies about enhancing Z department store's enterprise value will be provided.The evaluation of Z department store's company value and the analysis of its key drive factors that influence company's value can be used as a reference to other companies in the same industry to increase their enterprise value.Additionally,it also enables enterprise value evaluation theory to better serve China's market economy development.