Research On The Value Evaluation Of Medical Device Listed Companies Based On FCFF Model

With the continuous development of Chinese socialist market economy,trading activities in the capital market are becoming more and more frequent,all kinds of market entities are paying more and more attention to enterprise value assessment.Enterprise managers and investors regard the enterprise value maximization as one of their goals,so they attach great importance to the enterprise value when managing and seeking new investment opportunities.An accurate assessment of enterprise value is,as it were,the most important reference basis for various decisions of all kinds of market entities in market transactions.With the constant improvement of people's living standards in recent years,the development of health industry is becoming a hot spot,at the same time,the health care industry that closely related to people's health is also given more and more attention.The medical apparatus and instruments industry,which is studied in this article is put a higher place by the country and investors.The support of national policies,the increasing aging of our population,and the upgrading of the people's consumption level have all contributed to the increasing demand for medical devices.Under this background,China's medical equipment industry has attracted more and more domestic and foreign capital to enter,mergers and acquisitions investment gradually become the mainstream of the industry development trend,investors also put more and more attention to enterprise value.This paper first introduces the concept and method of enterprise value assessment according to the theory of enterprise value evaluation.Then the basic theory of FCFF model is introduced,the advantages and disadvantages of the model are presented,and some improvement ideas are proposed.Next,this paper combines medical instrument industry status to analyze the listed companies a medical equipment enterprise's financial position and the risks,and according to these,predicts the future business period,the company free cash flow and discount rate of a enterprise,and uses FCFF model to evaluate the value of a enterprise.Finally,the valuation result is obtained and analyzed.Through the evaluation,on the one hand,the applicability of FCFF model are validated in the listed companies of medical device industry.On the other hand,the valuation result provides certain reference basis for corporate investors.at the same time,this paper also explores ways to improve the accuracy of evaluation results and to improve the enterprise value.