The Evaluation Of Intrinsic Value Of XZ Company Based On FCFF Model

XZ company is a well-known domestic listed liquor industry enterprises,the company's investment value has been widespread concern,the current I worked engaged in securities investment in financial institutions,and intends to invest in the company stock.I am responsible for the analysis of the company's stock investment value from the perspective of intrinsic value.Therefore,how to scientifically and effectively evaluate the intrinsic value of XZ company is an urgent need to solve.In this paper,the cost method,market method,income method and option method for a total of four kinds of basic value evaluation method,comparative study,analysis of the advantages and disadvantages of various assessment methods and applicable conditions,combined with the background characteristics of the liquor industry in XZ company,taking into account the purpose of this assessment is to invest in the company's stock to provide a reference,investment institutions are concerned about the future profitability of the enterprise,this paper chooses the two phase model of free cash flow as the intrinsic value evaluation method of XZ company;Through the detailed analysis of the free cash flow model and its evaluation ideas,the application process is summarized;A detailed analysis of the company's environment and business conditions,combined with the results of these analysis,the company's financial statements for the first half of 2012-2016 as the reference of the basic data,estimate the company's key financial indicators to estimate the future free cash flow of XZ;Using CAPM model to estimate the cost of capital,by discounting the future free cash flow,it is estimated that the intrinsic value of XZ stock in December 31,2016 was 18 billion 674 million yuan,with a value of $48.63 per share,but on the day of the company's stock closing price of 44.45 yuan.Because in this valuation process,this article takes a relatively conservative attitude in the parameter prediction,so I think we can continue to track the company's share price XZ,If the stock price fluctuations caused by the market with a relatively large margin,the company's shares can be considered to hold.Through this study,I combined graduate students during the course of study,including financial management,corporate finance,accounting,marketing and other knowledge to study the value of XZ company,combining theory and practice,to solve practical problems of the company;At the same time,by using XZ company as a case study,it is of great practical significance to use the free cash flow model to evaluate the enterprise value,moreover,it has some reference value to evaluate the value of the company in the same industry and other industries.