The Research Of YTCO’s Corporation Value Management Based On Free Cash Flow

In recent years, Great changes have taken place in China’s securities market. The listed companys’size and quantity is achieved significant growth. Along with the development of the capital market, the company management practice and the maximization of enterprise value goal need further coordination and unity. The value management is the product of this trend, emphasized that the maximization of enterprise value is the ultimate goal of the company management behavior. The footholds of the value management are the enterprise value evaluation model, the effective evaluation and the business strategy, investment and financing decision, mergers and acquisitions, performance evaluation, management behavior and so on.This thesis is based on the need of the practice, use the common international enterprise value appraisal method—Discounted Free Cash Flow Technique, in the case of internal and external environment of YTCO, choose three stage growth model for its value evaluation, detailed showing the assessment of the formula, the parameters selection, the data screening, and the calculating process. Based on further analysis, we analysis the three key drivers of the corporate value—growth rates, return on invested capital and weighted average cost of capital. Through constructing the YTCO’s simple value tree, we make capital market value goal and company management control realize the organic unity. Finally, this thesis put forward the corresponding management measures according to the three key driving factors from the angle of management. This article with the complete reasoning process is presented the company value management processes based on free cash flow, so as to provide reference for the enterprise management practice.