Research On Equity Value Evaluation Of Shanghai A Network Technology Co., Ltd. Based On FCFE Model

Firstly,this paper outlines the theoretical background of the valuation of shareholders' equity and explains the current status of the estimation of the value of shareholders' equity at home and abroad.Secondly,it summarizes three common evaluation methods for assessing the value of shareholders' equity by income method.The advantages and disadvantages of these three methods are compared and analyzed so that the FCFE model is used to evaluate the equity value and the FCFF model is used as a control research.Thirdly,the principle of FCFE model is explained in detail.The factors affecting cash flow and how to calculate future cash flow,the influencing factors of discount rate,the determination method and calculation method,and the determination of the yield period are analyzed.Finally,the paper uses FCFE model to analyze and evaluate the equity value of Shanghai A Network Technology Co.,Ltd.,and use the FCFF model to evaluate the case enterprises and compare the evaluation results with the FCFE model evaluation conclusions.In this paper,we compare the two models to evaluate the results of the case company and find that the equity value of the FCFF model is greater than that of the FCFE model.It is found that the operability and accuracy of predicting interest-bearing debt have a greater impact on the FCFF model.When predicting interest-bearing debt,the FCFE model assesses equity value more strongly than the FCFF model.