Strategies On The Value Evaluation And Value Enhancement Of Wangfujin Department Store

With theeconomic development and the constantly-changing corporate management modes,the application research field of corporate value evaluation has expanded from mergeroracquisitionto corporate value management.As a basic task in corporate value management,corporate value evaluation is an effective measure to help a company to enhance its value and achieve its goal to maximize its value.The paper conducts the research on the value evaluation of Wangfujin Department Store,a representative of the retail industry,one of the fundamentalindustries ofnationaleconomy.At present,being faced with a series of problems,such as lower profits,unstable cash flow,severe competitioninChina and abroad,etc.,Wangfujin Department Store has stepped into a low-profit era.The enhancement of the corporate value and core competence has become an urgent issue for its sustainable development.Based on the relative theories of corporate value evaluation andfinancial management,the paper analyzes the profitability,solvencygrowthabilityandoperatingcapacity of the company,evaluates its corporate value through three value evaluation methods(Discounted Cash Flow Technique,Economic Value Added and Relative Value method),which are relative mature and suitable for the companies in China.the purpose of the evaluation is to get the reasonable value of the company,help its owner and management to find out the key factors influencing the corporate value and come up with some strategies to enhance the corporate value.The research findings show that the corporate value evaluated through the above-mentioned three methods is lower than its market value,which means that the corporate value of Wangfujin Department Store is overestimated by the market.Accordingly,the paper comes up with some corresponding suggestions to enhance the corporate value.The research hassomereferencevalueto the value evaluation and value enhancement of other retail companies.