Value Evaluation Of JONJEE Hi-Tech Enterprise Based On Free Cash Flow Method

With the rapid development of economy and society,people’s income increases,consumption pattern and consumption concept change,and they start to pursue highquality,green and healthy life style.Condiments are essential consumer goods in residents’ daily life.With the upgrading of consumption,condiment industry has also ushered in a new round of development,attracting the attention of the capital market.Accurate enterprise value assessment is the basis of capital market investment and financing activities,which not only helps investors to understand the real intrinsic value of enterprises,but also helps the management to formulate the future business development strategy of enterprises and help enterprises to achieve further value enhancement.Jonjee High-tech Industry(Group)Co.,LTD.(hereinafter referred to as Jonjee Hitech),as an old enterprise in the condiment field,has been affected by the epidemic and the fluctuation of raw material prices in recent years,and the company’s stock price fluctuates frequently.Therefore,the enterprise value is difficult to be inferred by its market performance,and a scientific value evaluation method is needed to accurately evaluate its intrinsic value.This paper takes Jonjee Hi-tech as the research object,carries on the enterprise value evaluation application research,during which adopts the literature research,quantitative analysis and other research methods.This paper firstly introduces the research background,purpose and significance,searches a large number of literatures to sort out and evaluate the research status quo related to enterprise value assessment at home and abroad,and then elaborates the related concepts and theoretical basis of enterprise value assessment,explains the concept and application of various enterprise value assessment methods,and makes a comparative analysis of their advantages and disadvantages and scope of application.After that,it expounds the development status of China’s condiment industry,analyzes the operating status and financial status of Jonjee Hi-tech,mainly from the four aspects of debt paying ability,operation ability,development ability,profitability analysis of Jonjee Hi-tech.Through the above analysis,it is found that the free cash flow method is the most suitable enterprise value evaluation method for the company,and the necessity and feasibility of using the free cash flow method are explained,choose to adopt the two-stage model to evaluate the value of Jonjee Hi-tech enterprise.Based on the analysis of the company’s historical financial data,the future cash flow forecast,the final calculated value is higher than the market price,indicating that the value of the enterprise is undervalued by the market.Therefore,the results of the new enterprise value evaluation of Torch high analysis.In order to further enhance the value of Torch High-tech,we put forward suggestions to optimize the product structure,expand the sales network,control the material cost and optimize the capital structure,so as to strengthen the value creation ability of the enterprise,and hope to provide reference value for similar enterprises to achieve value enhancement.