Business Valuation Based On Free Cash Flow To Firm Model(FCFF)

To ease the natural gas supply and demand, optimizing the use of natural gas structure, promote energy conservation, since the "Eleventh Five-Year", the state issued a series of policies and measures to guide and encourage private enterprises to participate in the restructuring of state-owned enterprises, made it clear that the construction of private equity capital of support crude oil, natural gas, refined oil storage and pipeline facilities and networks. A portion of gas utilization business of the company has been open, how to measure the value of corporate equity, to achieve effective management of the company, and thus become a serious problem.In this paper, the process of writing mainly on the research results in the field of valuation summary and analysis of the various valuation methods in-depth study in principle, the valuation process, a variety of assessment methods in using comparative analysis the valuation process, the applicability and limitations.Selecting the appropriate method of assessment methods for the specific companies is important. To assess the process through free cash flow this model, combined with contact during the internship related to their natural use of the companyThe specific situation and the companies in which macroeconomic conditions, industry conditions, to predict the specific project, and then get the equity value of a use of natural gas company. Found a significant impact on the equity value of income, combined with the natural gas industry with the use of the dual characteristics of utilities and energy industries, found that use of the company, whether natural gas suppliers and upstream or downstream users are very limited bargaining power in the valuation process Therefore, by increasing the market share proposed to enhance the equity value of the rationalization proposals, corporate free cash flow last aspect is certainly possible to use scientific models, on the other hand since the parameter estimation uncertainties encountered in the use for 0ther issues to be explained, and indicate the direction of further research.