Research On The Application Of FCFF Model In The Value Evaluation Of Listed Chemical Enterprises

With the development of China's economy and society,market activities are more and more frequent,and asset evaluation plays an increasingly important role.Enterprises often take the maximization of enterprise value as their financial management goal.Investors also need to make investment decisions according to the enterprise value.Evaluation agencies and their professionals need to accurately evaluate the enterprise value.It is of great significance for each economic activity subject to select appropriate methods to evaluate the enterprise value reasonably.In addition,in China's economic life,the chemical industry is a basic industry and pillar industry,involving a wide range of fields,many downstream industries,and plays an important role in almost all manufacturing industries.The operation of the industry is related to the national economy and the people's livelihood,so it is of certain importance to study the chemical industry,and it is of certain practical significance to study the value evaluation methods of listed chemical enterprises.Based on the existing research theories,this paper analyzes the applicability of different ways to evaluate the value of listed chemical enterprises in China,and finally selects the FCFF model in the income way to evaluate the value of listed chemical enterprises in China,analyzes how to determine the parameters in the FCFF model to be more suitable for the evaluation of listed chemical enterprises,and uses Wanhua chemical,a representative listed chemical enterprise.For example,a more specific study is carried out to further understand the application of FCFF model in the value evaluation of listed chemical enterprises.This paper is divided into five parts.The first part is the introduction,which introduces the ideas and existing theories of this paper.The second part is the analysis of the chemical industry and the evaluation method.It analyzes the chemical industry and the evaluation method of the listed chemical enterprises,and chooses the appropriate evaluation way according to the development of the chemical industry itself.Through the analysis,it is considered that the income way is a relatively better choice for the listed chemical enterprises in China.The third part is the analysis of the application of FCFF model in the evaluation of listed chemical enterprises.Firstly,the FCFF model is summarized,the free cash flow and FCFF model are analyzed.It is pointed out that the two-stage FCFF model is the common form,and the feasibility of using FCFF model to evaluate the value of listed chemical enterprises is analyzed Finally,combining with the characteristics of chemical industry,the paper analyzes how to determine the relevant parameters of FCFF model,and introduces the corresponding adjustment to the calculation of individual parameters to improve the accuracy.In the fourth part,Wanhua chemical,a representative leading enterprise of listed chemical raw materials,is chosen as a case to analyze the application of FCFF model in the value evaluation of chemical enterprises.The fifth part is the conclusion.Through the above analysis,it is concluded that the FCFF model has a strong applicability in the evaluation of the value of listed chemical enterprises in China.At the same time,it also points out that the predicted value of this study may have some limitations such as deviation.