Listed Companies The Value Of Investment Analysis Methods And Applied Research

The enterprise valuation reflects the overall profitability of the firm. Discount Cash Flow (DCF) methods are the common and reliable method in enterprise valuation. One of them, Discount Free Cash Flow (DFCF) methods, is most popular to be applied in valuation practice. Its two key factors: the forecasting of future free cash flows and the estimation the discount rate. The generally accepted, adapted standard on the definition of DFCF has not come into being due to its volatility, stochastic and dynamic properties, and much subjective factors involved.Connecting national situation, this paper emphasizes the study of how to apply the two important parameters of DFCF model. It states how to forecast the discount free cash flow and the discount rate from financial ratio and the internal factors structure of DFCF, forecasting the free cash flow linked with company's operation change due to external environmental changes. Selecting Wu Liang Ye company as a sample, it emphasizes main factors reflected the forecasting of future cash flow, the product supply and demand caused by the huge damages of raw alcohol during 5.12 Earthquake, the impact of current financial crisis which made our national economic growing slow down and the surge of stock market etc.The study methods includes: selecting some data of the sample, and regression analyzing methods the change among market profitability and stock profitability to confirm its parameter. About the company basic situation analysis, the financial index analytical method, the graph method, the tend method etc are usefulThe goal is that the investor can apply the model scientifically, rationally.