The Value Evaluation Of Enterprise Based On Free Cash Flow

In recent years,with the rapid economic development in our country,the stock market and capital market have also become more mature and perfect.The goal of enterprise management gradually changes from profit maximization to value maximization,enterprise value management through enterprise value assessment,comparative analysis of enterprise market value,can provide effective information about investors and managers to improve decision-making.At present,the idea of enterprise values evaluation has been widely applied for the fields of enterprise portfolio management,M & A analysis and enterprise financial management.At present,there are many researches on the evaluation of enterprise value in academia at home and abroad.Based on the review of the research and development of enterprise value assessment both at home and abroad,this article summarizes the existing theories of academia and its application in practice cases,and provides theoretical basis of the selection of the value evaluation method of F chemical industry,and the determination and calculation of related indexes.Through case analysis,this paper systematically analyzes the self-development of F chemical industry and the macroscopic environment and development of chemical industry,and points out that there are some problems of the evaluation and internal evaluation of F chemical industry.In the light of the actual development of F chemical industry,this paper compares and analyzes the three commonly used methods of valuing enterprise in China,and expounds respectively the applicability of each method.And prove that this article chooses the free cash flow method to evaluate the applicability and advantage of the value of F chemical industry and points out the limitations of the law in practice.This article focuses on the F chemical industry own development characteristics of free cash flow analysis of the two-stage model in its value assessment of the application,after the selection of parameters,data screening,calculation process,forecasting and other processes.The previous idea of improving the relevant parameters of the traditional free cash flow method(dynamic discount rate and beta correction)was put to practical use for the assessment of the value of F chemical industry and finally get the reasonable assessment resulted from F chemical industry.After the systematic evaluation of the value of this article,the intrinsic value of F chemical industry is 12.46 shares,the market value is 10.96 shares,the deviation degree is13.69%.This paper argues that the enterprise value has the risk of being underestimated.Finally,according to the assessment process,the F value of the industry's corporate value is mainly driven by the three factors of free cash flow,discount rate and duration,so as to provide suggestions for F chemical industry managers to enhance corporate value and investors to make investment decisions.