A Study On The Value Evaluation Of Automobile Manufacturing Enterprises Based On FCFF Model

In recent years,as the domestic economic growth slows down and the market demand gradually decreases,more and more traditional industries are hit by the economic downturn,such as automobile manufacturing.Faced with the new situation,not only enterprises themselves will face the risk of bankruptcy,many investors will also make the wrong investment decisions and suffer economic losses.Therefore,for enterprise managers,how to scientifically and reasonably conduct value management is particularly important,and the theory of company value management should be put into practice.In order to realize the management of enterprise value,the first thing is to make an accurate evaluation of enterprise value.Enterprise value evaluation is an evaluation method to predict the future value of the target enterprise by using specific evaluation methods.It also enables investors to understand the operating conditions of enterprises and make rational investment decisions.Generally speaking,enterprise value evaluation is of great practical significance to investors,managers and creditors.First of all,this paper has extensively read the relevant literature of enterprise value evaluation,deeply understood the development status of the manufacturing industry,found that FCFF model is most suitable for the valuation of manufacturing enterprises,and then selected jianghuai automobile,a listed enterprise in the automobile manufacturing industry,as the research object of this paper.Then,this paper refers to the financial data of jac from 2013 to 2018,conducts an in-depth analysis of jac's financial situation and operating results,USES FCFF model to determine the parameters involved in the evaluation process,and predicts the future cash flow(FCFF value)and discount rate of the enterprise.Finally,the obtained parameters were substituted into the model for calculation,and finally the enterprisevalue evaluation results of jianghuai automobile in 2018 were obtained.Through comparison,it is found that the evaluation result is smaller than the actual data,which indicates that the enterprise value of jianghuai automobile is overestimated.At the same time,this paper compares the stock price fluctuation trend from January to October 2019 with the research results to verify the research results,and finally finds that the research results in this paper are basically consistent with the actual situation of jianghuai automobile.In view of this evaluation result,this paper also puts forward a series of countermeasures suitable for jianghuai automobile to improve enterprise value,in order to achieve the purpose of effective management of enterprise value.