A Case Study Of Enterprise Value Evaluation Of Z Company Based On Improved Discount Rate

Today's China's economy is developing rapidly and various industries are also progressing.The asset assessment industry as a relatively new industry also ushered in the spring of development.As the business being evaluated increases,the types of businesses are becoming more diverse and integrated.Among them,the application of corporate value assessment is also becoming more and more frequent.For example,setting up companies,restructuring of enterprises,issuing stocks,increasing capital,expanding stocks,mergers and acquisitions,and bankruptcy liquidation,etc.,all of these corporate activities need to be evaluated before they are conducted.Use the results as a reference.Then there are more and more researches on the method of enterprise value evaluation,and a relatively complete theoretical system has gradually formed.With the improvement of the capital market,the income method of valuation methods has gradually become the main method.Among the income methods,the free cash flow discount method is the most widely used and advanced technology.When using this method,the prediction of the company's future cash flow and the calculation of the discount rate are crucial.The accuracy of the forecast results directly affects the accuracy of the valuation.This paper improves the discount rate in the free cash flow discount method.First,it predicts the capital structure of the company during the five-year forecast period,and realizes the dynamics of the capital structure,thus realizing the dynamic of the discount rate and making it more in line with the enterprise.Future business conditions.Third,improve the company-specific risk factor in the discount rate,and use the credit capability index to establish a scoring system to obtain more accurate results.The content of this article mainly includes the following parts:The first part is the introduction.It introduces the research background and significance of this paper as well as the research status of scholars at home and abroad.It also includes the introduction of research ideas,methods and innovations.This isfollowed by a description of the assessment case,which mainly includes the case background,assessment criteria,and corporate value assessment of the case company under the traditional assessment method.This is followed by a case study.This is the main part of the paper,including the introduction of free cash flow related theories and methods,followed by the analysis and improvement of the free cash flow model,and using the improved model to reassess the case companies.Improve the results before and after improvement and draw conclusions.