Research On The Influence Of Industrial Chain M&A Investment On Enterprise Value

CATL is a leading enterprise in lithium ion battery industry,with market share ranking no.1 for many years and its development process has been attracting attention.The rising stock price of a company since its listing is in essence the continuous enhancement of the company’s internal growth capacity and the reflection of the company’s effective operation and management strategy,among which the industrial chain m&a behavior is particularly prominent.Through the valuation research of CATL,the impact of industrial chain M&A on enterprise growth rate is explored,and then the change of enterprise value is explored.Based on the free cash flow model,this paper selects and determines the forecast index.Body part first analyzes in detail the earnings of the company’s business in nearly five years block and forecast,and determine the other parameters of the ratio of operating income situation,it is concluded that the enterprise future five-year free cash flow,and through the weighted cost of capital as the discount rate,GDP growth as the company’s future growth rate,calculate the value of evaluation results.By comparing with the market price of enterprises in the current year,it can be seen that the valuation results are relatively small and the difference is large,indicating that the valuation process ignores the important support point of enterprise growth.After classifying the m&a events of the company in recent years,and combining the stock price and earnings per share of the company in the past few years,the residual income model is used to calculate the new growth rate g under the influence of m&a events.By analyzing the correlation between the change of G and m&a behavior,it is proved that m&a of industrial chain has a positive effect on the improvement of the company’s growth ability.Finally,the new growth rate is applied to the free cash flow model to calculate the new enterprise value evaluation results,indicating that the industrial chain M&A behavior can increase the enterprise value.The comparison between the new valuation result and the market price proves that the enterprise value still has room to continue to rise,which is worth further increasing from the perspective of investment.