Research On The Evaluation Of Manufacturing Enterprises Based On FCFF Model Illustrated By The Example Of Fuyao Glass Industry Group Co.Ltd

With the interest rate increase by the Federal Reserve and the turning of China's monetary policy as a sign,the era of currency liberalization can be basically declared concluded.The economic situation in our country will be loosened from the past monetary easing to the tightening of liquidity and vigorously promoting the new policy era dominated by supply-side reform.With the real estate investment bottoming out and supply-side capacity being cleared,China's economic development may usher in a L-type soft landing.Affected by such factors as economic slowdown,insufficient market demand and other factors,the growth of building materials industry slowed down and the profitability declined.The production capacity of cement,flat glass and other industries was seriously excessed.The structural contradictions accumulated over the long term have become increasingly prominent.Under the new economic normal,faced with the new situation,such overcapacity industries will undergo drastic adjustments.Among them,small and micro enterprises that consume high energy and whose production capacity is lagging behind are forced to shut down and be eliminated.The entire industrial pattern will usher in a new definition of reshuffle.For the leading enterprises in the industry,this will be a major historical development opportunity for promoting sustained growth of enterprises,expanding production scale,guiding industrial structure adjustment and upgrading,and accelerating the transaction of external property rights such as mergers and acquisitions and reorganization.In this context,how to conduct a fair and reasonable assessment of such listed companies is not only a matter of strategic analysis,investment decision-making and value management of the enterprises themselves,but also an unavoidable problem for assessors and rating agencies.In the value investment market,it is also a major concern for the major brokerages and institutional investors both at home and abroad.Empirical research shows that listed companies in manufacturing industry have the characteristics of high growth rate,low risk and low price-earnings ratio,abundant cash flow and so on.Traditional methods have their own shortcomings in assessing their corporate value,and need to introduce more appropriate evaluation methods.The FCFF model has relative superiority and is more suitable for evaluating its enterprise value.Under the guidance of the theory,according to the development status,characteristics and industry analysis of manufacturing enterprises,Fuyao Glass,a leading listed company with certain representativeness,is chosen as the case enterprise.By analyzing the financial data of enterprises and analyzing the related theories During the course of operation,the data of upstream and downstream industry chain price,output,domestic and international competitive market share and future development trend were determined.The parameters were determined by FCFF model and the evaluation results were obtained.After calculation,it is found that there is little difference between the calculation result and the actual stock market price,the deviation is reasonable,the evaluation result is acceptable and has reference value for practice.This paper studies the value of listed companies in manufacturing enterprises through the combination of theory and case.It considers that the traditional valuation methods have some shortcomings in assessing the value of the enterprises and lacks the reasonable inference of the data in all aspects that affect the final profitability data,but based on the FCFF model,Combined with the speculation of the basic data changes at various stages of the calculation results,apply to assess the uncertainty or future growth potential of listed companies,which just make up for the traditional assessment methods in the valuation of such enterprises lack of value.The result of the case in this paper is basically consistent with the stock market price,which shows that using the FCFF model to evaluate the listed companies in manufacturing enterprises is reasonable and can provide a reference for the actual investment and corporate decision-making.