Enterprise Valuation Issue Research Based On The Cash Flow

With the deepening of China’s economic system reform, the trading behavior such as enterprise mergers and acquisitions, asset restructuring, equity issues, multinational joint economic growing and the application of enterprise valuation space has continued to expand. Valuation method is the central problem in enterprise valuation, through constant practice and development, the valuation methods are becoming more mature, the importance of cash flow in the valuation is becoming more and more prominent. In this paper, it’s starting from the connotation of enterprise value definition, and introduces the common valuation method and cash flow analysis method, emphasizes the importance of cash flow in enterprise valuation, and discuss how to use the cash flow indicator in valuation. With China vanke co., LTD. (hereinafter referred to as the "vanke") as an object, first discussed the correlation of real estate industry and economic cycle operation, analysis of the current domestic economic situation and financing environment, then the asset structure and asset quality of vanke overall grasp, and then analyzes its cash flow structure, the development trend and the related profit index, make evaluation on vanke’s cash flow situation, and comment on vanke’s long-term investment value.