Research On Enterprise Value Evaluation Based On FCFE Model

Value evaluation is the basis of investment management.In 2019,when the Science and Technology Innovation Board was launched,lots of scientific and technological innovation company were ready to go public.Many of them had completed the A,B and C rounds of financing,and were currently preparing for the final IPO.However,many investors were waiting to see how to establish a reasonable issue price for the enterprises to be listed.The importance and urgency of choosing reasonable value evaluation methods for these enterprises to be listed,finding out the driving factors of enterprise value,helping managers make reasonable pricing decisions and improve management performance,and giving reasonable suggestions for investors’ investment decisions are also increasingly highlighted.Company H,the subject of this study,is a leading provider of complete solutions for metal additive/additive manufacturing technology in China.Relying on intelligent 3D intelligent manufacturing,it is oriented to high-end manufacturing fields such as aerospace,navigation and nuclear power.It is one of the top 100 high growth enterprises in 2021,and is currently preparing to be listed on the Science and Technology Innovation Board.Under the current strategic deployment of the state to focus on supporting high-tech entrepreneurial powers such as expertise,innovation and so on,it has special research significance.According to the research ideas from theory to practice,this paper summarizes the relevant theories and methods of enterprise valuation,and combines the characteristics star company with the free cash flow discount model to evaluate the enterprise value of H Company.Firstly,it introduces the research context and conclusions of domestic and foreign scholars,and sorts out the scholars’ views on enterprise value evaluation and free cash flow.Secondly,this paper systematically expounds the characteristics,value evaluation characteristics,life cycle and other key dimensions.In the case study of Company H,the applicability and advantages of the free cash flow based value assessment are analyzed from the perspectives of national environment,industry characteristics,competitive environment and financial characteristics,and the assessment basis is provided to estimate the enterprise value through the free cash flow model.The evaluation results and the evaluation results of the P/E ratio method are mutually verified to illustrate the applicability of the method to the value evaluation of H Company,and analyze its shortcomings.This paper concludes the overall enterprise value of H Company,not only provides a reference for investors to conduct scientific IPO pricing,but also broadens the application field of free cash flow discount method,providing a reference for the value evaluation of scientific and technological innovation enterprises.