Value Evaluation Of Small Household Applicance Enterprises Based On Free Cash Flow

China's economic development has changed from a high-speed growth stage to a high-quality development stage.Everyone's electricity,as a necessity of life,has been widely used in people's lives.Small household appliances pay more attention to improving people's quality of life and taste of life.In addition,small household appliances have their own professional functions and more sophisticated workmanship,so they are favored by more and more consumers.As a typical representative of small household appliances industry,in 2014,the sales volume of Jiuyang stock was 5.943 billion,and the first 100 million soybean milk machine users of Jiuyang stock were born.However,since 2018,Jiuyang stock began to transform from "Jiuyang = soybean milk machine" to "Jiuyang = quality small household appliances",the sales volume of soybean milk machine is gradually decreasing,while the overall economic profit of the enterprise has not decreased.Therefore,by carrying out the transformation of Jiuyang stock Reasonable value evaluation to find out the key factors to drive the enterprise value.Based on the characteristics of small household electrical appliances enterprises and the applicability of the model,this paper chooses the discounted free cash flow model to evaluate the value of Jiuyang stock enterprise.The financial statements of Jiuyang Co.,Ltd.from 2013 to 2018 were sorted out,and the financial data were readjusted,and the balance sheet and profit statement for management were prepared.First,the historical free cash flow of the enterprise is calculated based on the adjusted data.Through the data analysis,we can see that the historical free cash flow of Jiuyang stock is relatively stable and its future development prospects are relatively good.Secondly,on the basis of historical financial data,we use the discounted free cash flow model to predict the financial data of the enterprise from 2019 to 2023,calculate the future free cash flow of the enterprise,estimate the enterprise value,and verify the evaluation results with the P / E ratio model.Finally,the sensitivity analysis of the estimated enterprise value is carried out to find out the most sensitive factors driving the enterprise value and put forward corresponding suggestions.Finally,the value of Jiuyang stock company is 15.4 billion yuan,and the value of each share is 16.44 yuan.As of December 31,2018,the stock price of Jiuyang stock is 16.01 yuan per share.The evaluation result based on the discounted free cash flow model is similar to the market value,which shows that the evaluation model hascertain rationality.Based on the sensitivity analysis of the evaluation results,it is concluded that the business income,business cost,capital structure,increment of working capital and growth rate of an enterprise are most sensitive to the impact of enterprise value.Therefore,four suggestions are put forward for the above sensitive factors: first,to improve the operating profit rate and enhance the profitability;second,to optimize the financing mode and reduce the cost of debt capital;third,to strengthen the operation The fourth is to strengthen strategic management and increase the growth rate of enterprises.