Research On The Valuation Of Home Appliance Companies Under Digital Transformation ——Take The Midea Group As An Example

Under the trend of China’s economy shifting from rapid to high-quality development,the digital economy plays an important role,and technologies such as big data,cloud computing,blockchain,and artificial intelligence will become advanced production factors and will promote earth-shaking changes in China’s economy and society.Therefore,in the context of the digital economy,the digital transformation of enterprises has become a bright spot in economic life,and the degree of digital transformation is affecting the value of enterprises.This paper selects home appliance companies as the research object,explores in detail the value assessment of home appliance companies under digital transformation,introduces the current situation and strategic choice of home appliance companies under digital transformation,analyzes in detail the problems that occur in the process of digital transformation of home appliance companies,and studies the impact of these problems on the valuation of enterprises,and finally selects the free cash flow FCFF model to value home appliance companies under digital transformation.This article focuses on the analysis of the impact of digital transformation on the cost of equity capital in the discount rate of enterprise valuation,and after comparing different asset pricing models,it finally chooses to add digital factors based on the three-factor model of Fama-French,and innovatively constructs a four-factor model that incorporates digital factors as a predictive optimization model for the cost of equity capital of home appliance enterprises under digital transformation.The case selects Midea group,a leader in the home appliance industry,to apply the optimization model,to introduce the digital transformation process of Midea group,to predict the free cash flow of Midea group under digital transformation,and to finally estimate the value of Midea group under digital transformation.Finally,the estimated value of Midea Group under the digital transformation is compared with the actual market value,which verifies the practicality of the valuation optimization model in the article,and draws relevant enlightenment for the company’s digital transformation and investment valuation.This paper optimizes the valuation model of home appliance companies under digital transformation,and hopes to have certain reference significance for the value assessment of other digital transformation enterprises.