The Enterprise Value Evaluation Of Listed Companies Based On Discount Cash Flow Model

The enterprise value evaluation is the demand of the development of economy in our societies, which came into existence with the property right transaction more and more frequent and diversifies. The enterprise value evaluation have been attached much more importance by international evaluation boundary. With the perfection of the market economy system and the maturation of the capital market, enterprise value evaluation theory and technique are becoming the issue which people are concerning about much more.According to the theory of enterprise value evaluation, this paper has discussed some popular enterprise value evaluation measures. After comparative analysis, the paper draws the conclusion that Discount Cash Flow is the best approach that fit our domestic enterprise's current situation. Concerning of the advanced experience in developed countries as well as unifying actual situation of domestic enterprises and the capital markets, this paper particularly analyzes the choice of parameter in Discount Cash Flow model. Then researches the listed companies in our country, and tries to choose a system suitable for enterprise value evaluation in China after the practical analyses on the fitness of Discount Cash Flow model to Chinese capital market. And the results show that the values calculate from Discount Cash Flow model are highly correlated with their market values. The desired contribution is to make some beneficial explorations in formulating an enterprise value evaluation system with Chinese characteristics.