The Study Of Periodic Enterprise Value Evaluation Methods

The periodic industry is very important to Chinese economy. It includes some basicindustries which support economy development of our country. Due to global financialcrisis, the periodic enterprises overall performance declined and their stocks wereundervalued in markets. However, motivated by the urbanization and industrialization ofour country, in the long run the periodic industry has enormous potential for development.Properly assessing the periodic enterprises can help both the stockholder and investor torecognize the inherit values of the companies. Meanwhile, accurately assess properties canpositive support the decision making in transactions such as enterprise merger andacquisition, stock exchange and etc.This thesis focuses on the research of asset appraisal models, approaches andapplications in periodic industry. In this paper, we first reviewed literature about this topic,then both theoretical and empirical analyses are adopted and finally some practical casesare examined. The conclusions of this paper are demonstrated by data from14listed ironsand steels companies which are typical examples of periodic industry.This thesis consists of six chapters. In chapter one, it supplies an outline for themotivation, object and scope of the research, summarizes business evaluation and putsforward the research task. The second chapter and the third chapter, which are the keychapters, discuss the application of method of corporation evaluation in periodic enterpriseand analyze the scenario analysis method and the FCFF model. Then, the fourth chapterand the fifth chapter make the evidence analysis to further explain the application of thescenario analysis method and the FCFF model in periodic enterprise. In these two chapters,it takes14listed companies in Chinese irons and steels industry as a sample and applies acorrelation testing to appraisal value and market value and verifies the efficiency andapplicability of the scenario analysis method and the FCFF model. At the final chapter, testresults are given to show the high degree of correlation between appraisal value and marketvalue and the comparative advantage of the scenario analysis method and the FCFF model.