Research On Evaluation Of Financial Leasing Enterprises In Chinca Based On FCFE Model

Finance lease,derived from traditional lease,is a form of lease trade which combines Finance with Leasing-assets.Since it allows a low guarantee standard and knows the lessee’s credit,it is popular with SMEs(small and medium-sized enterprises).The profit of Finance lease is greatly influenced by interest,exchange rate and changes in the value of the subject matter and other market risk.At present,due to the current overall downward market interest rates,macro-economic slowdown and other factors,the profits of financial leasing business are quite uncertain.And this kind of uncertainty in profit makes appraiser become doubtful in estimating the obtained enterprise value evaluated by income approach.Based on what is mentioned above,this essay adopts qualitative analysis,case analysis and some other research methods to study the application of equity free cash flow discount model(FCFE)in the Evaluation of financial leasing companies in China.After a more detailed outline of theories,this essay takes TH Financial Leasing Co.,Ltd.as an example.This essay is divided into five parts.The first part is the introduction,which describes the background and significance of the research and summarizes the research results at home and abroad.It will also clarifies the contents and methods of the essay,introducing the contribution and shortcomings of this essay.The second part is the study of the development of financial leasing companies and Evaluation Methods,and introduces the applicability of financial leasing business development status and characteristics,as well as traditional assessment methods,FCFE model,FCFF model of financial leasing enterprises the study.While the third part focuses on the equity free cash flow discount method,introducing the concept of determining FCFE model evaluation and model metrics.The fourth part is the case analysis.This section selects TH Financial Leasing Co.,Ltd.as the research object by using estimates FCFE assessment methods to verify the discounted cash flow model in science and rationality of financial leasing industry.The fifth part is the conclusion and prospect.Through case studies to assess the value of the company,this essay persuades that FCFE model is a suitable financial leasing company’s enterprise value assessment methods,which provides a reference for the future assessment of the value of similar enterprises.