Comparison And Application Of FCFF Discount Model And EVA Discount Model In Enterprise Value Evaluation

How to measure the true value of the enterprise is the core issue in the capital market and enterprise management.In order to overcome the past to profit as a single goal of the evaluation system inherent defects,the SASAC begin to use the economic value added as the central enterprises performance evaluation standards since 2010.The concept of economic value added and applied to the enterprise value assessment has gradually become more and more attentioned in theory and practice.This paper chooses the most commonly used FCFF discount model and EVA discount model in the current enterprise value evaluation,first,this paper prove the equal of the valuation result in two valuation models,then find out the cause of two valuation model in practice valuation conclusions are not equal.Then use the two methods to evaluation the value of Yili Group Co.,Ltd.At last,use the conclusions of market comparison approach appraisal as a reference.The results shows that EVA discount model is more suitable for enterprise value assessment,but there are some deficiencies.In this paper,some suggestions are put forward to improve the accuracy of EVA valuation model.