Evaluate The A Company With Fcff Model

The enterprise value assessment referred to the value of valuation, corporate valuation, the purpose is to analyze and measure the enterprise or a business unit fair market value (intrinsic value), and provide relevant information to help investors and regulatory authorities to improve decision-making and rational investment.The enterprise value evaluation report to investors or authorities to set up companies, corporate restructuring, stock issuance and listing of equity transfer, corporate mergers, acquisitions or separation, an important prerequisite for financing. Standing investors and the management’s point of view, the enterprise value assessment studies have considerable practical significance. Based on these realities and urgent request, I review the comb has always been related to the classical theory of corporate valuation, in the study compared the historically applications and the universal application of business valuation methods based on the combination of China’s national conditions, focused on free cash flow models (FCFF), and use this model for empirical assessment of listed companies a department store.The intrinsic value is not the simple addition of existing assets, is not the measure of short-term profit. But reflect the prospect of the industry in the sustainable management of the assumption, the existing management system, the causal relationship between strategic planning and sustainable development and investment to future earning, provide guidance and direction for the corporate decision-making and rational investment.The vitality of the assets from the operator’s management, with the value of the assets in the hands of different managers of their intrinsic value may be a huge difference. The following example is not uncommon:the same may be under the management of A bankrupt liquidation, and replaced the B operation is reborn to become the object sought after by investors. Clever business managers disease good at coordinating the production and management, financing, the triangular relationship between the investment and can stand on a strategic level will be dispatched to the limited cash flow and reasonable management, debt, dividends, investment in all aspects. Most of the time in a rapidly changing market stands according to an advantageous position to provide favorable protection for companies to create future earnings.