Research On Value Evaluation Of Dinghai Cement Enterprise Based On Improved FCFF Model

In the development of enterprises,the financing and expansion,the joint venture and the merger and acquisition are all involved in the changes of equity and management rights.Therefore,the evaluation of the enterprise value has become an important part of the asset valuation industry.However,since the development of the asset appraisal industry,the evaluation method has been solidified.In the hugely changing economic market,the details involved in the previous assessment process may not be able to adapt to the current market environment.How to reasonably improve these details has become an urgent problem to be solved in the evaluation of modern economic activities.The gradual and standardized evaluation environment has put forward higher requirements for the evaluation organizations and personnel.At present,there is a large amount of literature on the improvement of the FCFF model used in the practice of the income approach.There are mainly listed companies for analysis,and there is less research on the non-listed companies for FCFF model.The research of this paper is based on the purpose of acquisition of the most common transaction parties and evaluates the equity value of non-listed companies.On the basis of sorting out the literature,this paper tries to improve the model by using the related theories,time series model theory and life cycle theory,and tries to establish a more reasonable FCFF model by using the dynamic weighted average capital cost.Starting from the second chapter,the author analyzes the enterprise value evaluation and its theory,and discusses the defects in the evaluation process of traditional FCFF model.In the third chapter of this article,based on the above,Cement Company in the traditional industry is selected to use the FCFF model to evaluate the company’s value,and to analyze and summarize the irrationalities in the actual operation process.In the fourth chapter,the author theoretically improves the FCFF model used in practice and then applies the improved FCFF model to predict the future free cash flow by using EVIWS,SPSS,EXCEL and other software,at the same time,it is concluded that the enterprise value evaluation period of earnings,calculated using dynamic weighted average cost of capital,enterprise value and the assessment result were analyzed.