Valuation Of A Steel Company Under The Background Of New Normal State Of Chinese Economy

Iron and steel industry is the important pillar industry of national econony.There is rapid development of iron and steel industry in our country in recent 10 years,and got considerable progress.However,for long time,the extensive development of iron and steel industry pay too more attention to product yield,ignore the product quality and production equipment level.These lead to slow improve of production efficiency and big gap of product quality with developed countries.With the out break of the financial crisis in 2008,many years of accumulated contradictions appeared,such as excess production capacity,backward equipment,products and product horrogeneity,all of these become problems that Chinese iron and steel enterprises have to face now.At the background of China new normal economic situation,the government push the economic reform promote reform of the supply side,release new industrial policy and necessary financial policy,such as address production capacity,the implementation of debt-to-equity swap,etc.It is very important that understanding the enterprise valuation under the circurrstance.The purpose of the enterprise valuation is to reasure enterprise market value as business overall,it is base of market transaction price.The enterprise valuation methods can be classified to four methods:DCF,liquidation valuation,relative valuation,method and the option valuation method.This article will take listed A company as research subject,use methods of qualitative analysis and quantitative analysis,divides method into certainty condition and uncertainty conditions and integrate use of discount cash flow method and the option method to get the enterprise valuation.The,method of DCF reflects the enterprise future profitability,it's divided into immediate,mid and long-term value according to the accuracy of forecast in this article.Meanwhile,assuming that the macroeconomic will steady rise and steel industry enter new cycle after 10 years,uncertainty factors valuation can be evaluated by real option.