GZ Company’s Value Evaluation And Countermeasures For Improvement

With the recovery and rapid development of Chinese securities market since the 1990 s,corporate value assessment and Chinese securities market push forward together.How to choose the valuation model scientifically,evaluate the corporate value objectively,and explore the factors affecting the intrinsic value of the corporate are of great significance to the management and investors.At present,there are few listed corporates in the baked goods industry,leading to the lack of relevant corporate value research.However,with the expansion of the baked goods industry,the industry in recent years by the capital favor,development potential is huge.Therefore,it is particularly necessary to perfect and enrich the related research of corporate value of our baked goods industry.Among them,although GZ Company is one of the earliest listed baked food corporates in China,its market competitiveness has declined in recent years,and its corporate value is at a medium level compared with other companies,so it is necessary to study the corporate value of this company.This paper takes GZ Company as the research object,and uses FCFF model to carry out enterprise value evaluation and improvement countermeasures research.Firstly,the free cash flow model at home and abroad,other corporate value evaluation methods,the research of corporate value enhancement and the corporate value research of domestic baking industry are reviewed respectively.Secondly,it introduces related concepts and theories,and describes and compares the evaluation methods of corporate value,so as to explain the feasibility and scientificity of choosing FCFF model in this paper.Thirdly,according to the environment of baking industry and the financial data of GZ Company from 2017 to 2021,the basic situation is analyzed from three aspects: assets and liabilities,profit and loss,and cash flow.Then,according to the FCFF model to predict the future operating revenue,free cash flow and determine the discount rate,estimate the corporate value of GZ Company.Then taking the closing price of GZ Company’s stock on the base date of evaluation as reference,and use the price-earnings ratio and price-to-book ratio method for auxiliary valuation,in order to verify the rationality of the FCFF model evaluation results.Then,according to the valuation results,FCFF model evaluation process and the company’s financial status quo,combined with sensitivity analysis to find the main reasons affecting the low value of GZ Company.Finally,from the expansion of the company’s income,effective cost control and optimize the capital structure of three aspects for GZ Company to improve the corporate value to provide a little reference.