Research On Valuation Of Muyuan Co.,Ltd Based On FCFF Model

China is a major global pork producer,compared to its huge market capacity,the concentration of China’s pig breeding industry is relatively low,and the overall scale of the industry is still at a low level.After nearly 30 years of development,Muyuan Foods Co.,Ltd has formed an integrated pig industry chain.With the positive promotion of various factors,the scale of national scale pig breeding enterprises continues to grow,Muyuan Foods Co.,Ltd actively expand their production capacity,and the stock price has shown a certain degree of growth,while being highly sought after by the market,it has also encountered considerable doubts.As an investor,if you want to make your investment truly value-added,you must pay attention to the intrinsic value of the investment object.Only by evaluating the enterprise value and making buying and selling decisions based on it can investors continuously bring the stock market price to a new equilibrium state.The level of valuation directly reflects the recognition of listed companies in the market.With the introduction of the theory of valuation system with Chinese characteristics and the subsequent gradual establishment,investors have more profound requirements for enterprise value evaluation.Therefore,academic and practical circles need to promote the scientific and effective valuation and pricing,and deeply grasp the characteristics of China’s industrial development.First,this paper sorts out the relevant literature of enterprise valuation,then summarizes the relevant theories of enterprise valuation,compares the advantages,disadvantages and applicability of various valuation methods,and summarizes the formulas,characteristics and steps of the free cash flow for the firm discount model.Again,this paper on Muyuan Foods Co.,Ltd of the macro environment,industry situation,competitive advantage,development strategy and financial situation are analyzed,then this paper use free cash flow discount model,forecast the related parameters of the original shares,get the valuation results,then through the market method,compare the results of the method.Finally,the conclusions of this paper are summarized,and some suggestions are made according to the valuation results and the problems encountered in the valuation process.Through the research in this article,managers can discover the factors that affect the value of enterprises,and at the same time,it also has certain reference significance for investors.