Value Evaluation Of ZBOM Furnishing Enterprise Based On Discounted Free Cash Flow Model

With the continuous deepening of reform and opening up,public living conditions have been continuously improved,living conditions have been increasingly optimized,and the demand for furniture in the consumer market has also been expanding.With the rapid growth of the furniture industry,the market competition is becoming more and more fierce.If enterprises want to maintain the expansion scale and improve profitability in the competition,they must start with improving the internal enterprise value and formulate targeted competitive strategies.As one of the leaders of the whole house customized furniture,ZBOM has developed rapidly in recent years,the scale is growing,and the demand for its value evaluation is also increasing.The study of ZBOM value evaluation plays an important role in predicting the future development trend of ZBOM,optimizing the enterprise development strategy,and shareholders and potential investors better understand the internal value of the enterprise and make investment decisions.Taking ZBOM as the research object,this paper uses the discounted free cash flow model to evaluate its enterprise value.Based on the research of enterprise value evaluation theory and relevant literature at home and abroad,firstly,this paper expounds the concept and method of enterprise value evaluation and the basic theory of free cash flow discount model.Secondly,it analyzes the development status of the furniture industry,expounds the general situation of ZBOM furnishing enterprises,analyzes the financial status of ZBOM furnishing,and understands the development status of the target enterprises as a whole.Thirdly,combined with the public data,according to the free cash flow discount method,the two-stage model is selected to evaluate the value of ZBOM furnishing enterprise,and the income period of the enterprise’s future cash flow is divided into prediction period and follow-up period;Based on the analysis of the enterprise cash flow of ZBOM from 2017 to 2021,predict the future free cash flow;Estimate the capital structure,debt capital cost,equity capital cost and weighted capital cost,and predict the discount rate to further calculate the enterprise value;The market method and stock price comparison method are used to analyze the rationality of the valuation results.Finally,sensitivity analysis is carried out,and according to the results,suggestions are put forward to improve the value of ZBOM furnishing enterprises from four aspects: strengthening business management,strengthening material cost control,strengthening fixed asset management and improving sustainable growth ability,so as to help enterprises improve their value.