The Application Research Of FCFF Model On The Valuation Of Expressway Company Takes Shenzhen Expressway Company For Example

As the pace of economic globalization,knowledge and information have been accelerated,it has become a significant trend.Currently,it has been widely used for the valuation of corporate mergers and acquisitions,restructuring,listing,the company's investment decisions and management,it also play a pivotal role in risk-averse and the boosting of the management efficiency.Along with China's economic development,enterprises have become a special commodity.The valuation of the enterprise has become a hot issue of concern to the theoretical and practice circles in general.Highway industry and the national economy and people's lives are closely related.At present,highway companies are accelerating the pace of corporate restructuring,transformation and upgrading,hence a promising prospect.Highway industry is a rising industry.By combined highway enterprise's features and the related theory,it will correctly assess the intrinsic value of the motorway companies;It can provide the basis for the transfer of shares,restructuring financing,equity investment and boost the theory of company development.In this view,we believe that it is very meaningful to value a listed highway company base on the financial statements of this selected listed highway company.Making use of financial management,accounting and valuation,this paper use cash flow valuation method to value Chinese highway Enterprises,takes Shenzhen Expressway Company Limited as a case study.This thesis launches studying according to the following structure and order.First,in order to elaborate the importance and necessity of the highway business valuation,this article introduces the research background,theoretical and practical significance,as well as the status quo,domestic and international research.Then,according to the theory and method of valuation,this paper focuses on four valuation models and elaborates each model's application.Combined with the status quo and characteristics of highway companies,we ultimately determine to use the income approach to valuation the highway company.Secondly,by comparison of the dividend cash flow model,the equity cash flow model,free cash flow model and the economic value added model,we ultimately determine to use the free cash flow model to measure the valuation of highway enterprise.This paper describes the principles and the assessment procedures of discounted free cash flow method,and then uses the discounted free cash flow model to verify the applicability in valuation highway enterprises.Finally,Main conclusions are drawn as follows:(1)Using free cash flow discount model to assess the listed highway companies is relatively scientific,objective and effective;(2)By comparison of the appraisal value of Shenzhen Expressway Limited Company and the actual market value of the firm,to verify the scientific and rational of free cash flow model.By combined the mature valuation theories with the current characteristics of highway enterprise,this article find the intrinsic value of highway enterprise.It enrich and develop the value assessment studies of motorway companies,as well as the company's management,and it also provide a scientific and objective basis for the supervisor of highway company,it has a certain theoretical and practical significance.