The Evaluation For Household Electrical Appliance Enterprises Based On FCF Model

The origin of corporate value assessment,developed in the West,after numerous experts work hard,began to gradually improve.In contrast,Chinese enterprises and academia for the study of value evaluation started late,with the reform and opening,and economic growth,mergers and acquisitions between enterprises increased,the value of the assets of enterprises to assess the enterprise development has become an urgent problem to be solved.Based on the analysis of domestic and foreign enterprises' value evaluation,this paper compares and analyzes the different value evaluation methods.Based on these value evaluation theories and the US companies,the case analysis method is adopted to analyze the characteristics of the enterprises that affect the enterprise value evaluation,Development status,internal and external environment of enterprises and other factors in-depth analysis of the value of household electrical appliance enterprises to assess the use of free cash flow method of rationality,and free cash flow method to determine the relevant parameters and methods to explore.Based on the annual report and operating data of Midea Group,the overall value of Midea Group was evaluated to test the adaptability of the value assessment of home appliance enterprises to the model of free cash flow.and finally comes to the conclusions as follows:(1)The differences between the enterprises' own limitations and the external environment lead to the heterogeneity of the enterprise's value characteristics.There is no assessment method applicable to all enterprises in the actual application.It is necessary for the assessors to adopt the rationale assessment method for the business characteristics of the target enterprises,(2)By analyzing the business situation and financial data of the enterprises,we can understand the risk factors faced by the enterprises,quantify the risk factors into the discount rate of the evaluation model,and assess the overall value of the enterprise,(3)The evaluation model can only be used to determine the future operation of the enterprise.There are some differences in the results of different evaluation models,and it is necessary to analyze the internal and external factors of the enterprise.