The Application Of Income Method In The Valuation Of Listed Home Appliance Companies

The term "valuation" is getting higher and higher attention in people’s lives,especially in those financial news.Such as a certain company is the highest valuation of a certain field at present.The search for valuation methods has never stopped,working towards a more appropriate and more accurate direction.The integration of the Internet,high-tech and household appliances,resulting in smart household appliances.Maybe in the future the smart household appliances will become the industry’s profit support.So,the traditional home appliance industry is experiencing new opportunities and adjustments.These methods to assess the value of corporate should also be improved with the development of this industry.Through the theoretical analysis,found that the current valuation process,the combination of growth rates and growth factors analysis is not tight enough.This passage aims to improve this situation.Combined with the theory and the actual situation of household appliance industry analysis,then choice the future income method for the industry valuation.In recent years,large brands getting more and more market share in the household appliance market,to some degree,forming a monopoly effect.The Midea Group is representative of both the product and the development path,also have a high market share.Therefore,it will be used as the object of specific research,and select the FCFF model and the EVA model to evaluate.On the basis of previous research of the reclassification of working capital predicting,this article will change the reference standard of predicting.Using the idea of segmentation to change the forecast of operating income.Conclusion:it is very important to confirm the discount rate and the growth rate of the future income method.How to confirm those parameter also reflect the art of evaluation.It is contribute to enhance the objectivity of estimation process due to the segmentation of operating income and working capital,the change of the reference standard during the forecasting process.It will not lead to a significant increase of workload.The FCFF model is superior to the EVA model in assessing the value of household appliance enterprises,judging from the comparison of data availability and computational efficiency.In order to reduce the risk of practice of the assessment staff and strengthen the supervision,the relevant departments should make certain provisions on the determination of some parameters in the evaluation process,especially the higher sensitivity discount rate.