Reasearch Of Enterprise Value Case Based On Free Cash Flow Method

The maximization of enterprise value is a trend of enterprise development.How to analyze the value of the enterprise has become a key issue in the theoretical and practical circles.Enterprise value analysis is not only very important for external investors,but also an important tool for internal managers to analyze financial problems.The value of the enterprise is the present value of the future of enterprise free cash flow.The free cash flow of the enterprise is mostly derived from the business activities of the enterprise,which can reasonably reflect the long-term development potential of the enterprise.Therefore,how to objectively analyze the value of the enterprise and how to fully understand the value of the enterprise have become a very important issue in China.This paper takes China State Construction Engineering Corporation Limited(CSCEC)as an example.Based on the theory of enterprise value assessment,it adopts methods such as case analysis and literature research.Based on the free cash flow method,the paper analyzes the enterprise value of CSCEC,and proposes a plan to enhance the value of the enterprise based on the analysis results.Firstly,through the comparative analysis of several methods of enterprise value evaluation,the advantages of the free cash flow method are highlighted,and the rationality of the free cash flow method for CSCEC is expounded.Secondly,based on the data of China Construction Annual Report and related data,the future free cash flow and weighted average cost of capital of the enterprise are predicted,and the value of the enterprise is further analyzed and estimated.At the same time,the results of the evaluation are tested.Finally,according to the analysis of the value of CSCEC,some inspirations for improving the value of CSCEC are obtained for the factors affecting the value of CSCEC,and some suggestions for the inadequacies of using the free cash flow method are put forward.