Estimation Of FAW Car Co., Ltd. Value Based On DCF

The maximum of the company value is the core of the company finance. How to recognize and estimate the value of the company is a big topic about the investors. The writer wants to estimate the value of the FAW Car Co., Ltd. (a listed company in Shenzhen Stock market, 000800) to help the investor make the right decision.There are so many methods to estimate the company value. The DCF model is more advanced than other methods like the traditional profit index, comparable company method etc. The value based on DCF is more accuracy than the others. The writer tries to build up the DCF model of FAW Car Co., Ltd. in this thesis to work out its actual value.The main opinion of this thesis is that if you want to evaluate the whole price of the company, first, you should analysis the macro and micro atmosphere based on the historic accounting information. The writer uses the foundational research, normal research and the quantity analysis. The aim of the writer is to use the DCF method to help the investor dig up the value driving elements;connect the value and the revenue from the investment to make the right investment decision.