Valuation Of Enterprise Based On Free Cash Flow Discount Model

Enterprise value is the most accurate measure of enterprise overall performance and operating conditions,the most comprehensive index of enterprise value assessment in the company's business and investment strategy level has a wide application,financing and share in the enterprise development,joint partnership,as well as mergers and acquisitions,are related to equity,changes in the management of these behaviors to investors and operators know be evaluated the intrinsic value of the company.Therefore,reasonable and accurate enterprise valuation plays a crucial role in the company's operators and investors.Based on this background,this paper first sorted out the historical literature related to free cash flow,and made a simple classification and review;Secondly,it introduces the theory of free cash flow and puts forward the basic forecasting logic and method of operating revenue and cost.Again,the case analysis method is used to evaluate Ajinomoto company in Japan,and the theory is applied to practice.Finally,it summarizes the valuation,and proposes the direction of future optimization.The innovation of this paper lies in the detailed calculation of operating income and cost at the business level.The logical reason is that net profit is the main source of operating cash flow and the basis for the prediction of other income and expenses.According to the previous literature,there are some problems such as the lack of close connection between the valuation theory and the actual business,the lack of depth in analyzing the free cash flow at the business level,and the limited selection of cases to domestic listed companies.This paper has some supplement and enlightening effect in the above aspects.