HM Company Based On Free Cash Flow Value Assessment Study

China’s real estate industry has experienced rapid development for more than ten years Nowadays,with the continuous deepening of the influence of regulation and control and the gradual establishment of a long-term mechanism,the development of the real estate industry has gradually turned to stability.At present,the competition in the homogenization of the industry is fierce,and the enterprise has developed to a certain scale.The bottleneck is prominent.The traditional development model is no longer suitable for today’s development.Only through differentiation can it win in the fierce competition.This requires real estate enterprises to actively transform their strategies and seek diversified development.The most direct way is to achieve diversification through mergers and acquisitions.As the capital market gradually matures,economic activities such as mergers and acquisitions,restructuring,and equity transfer occur from time to time.Any enterprise must pass the value assessment before conducting certain economic activities,thus providing a reference for investment decisions.This paper mainly applies the evaluation method based on free cash flow to the value evaluation of HM company which is in the process of diversified strategic transformation,and conducts in-depth research on this.The main research content is divided into six parts:The first chapter is the introduction,which shows the research background and significance of this paper.It sorts out the related literatures at home and abroad,introduces the research content and research methods of this paper.The second chapter is an overview of the related theory of enterprise value assessment.The paper briefly analyzes the methods of value assessment and introduces the free cash flow method in detail.The third chapter is the overview of HM company and the analysis of the present situation.It introduces the basic situation of the company from the aspects of industry development environment,operation status and core competitive advantages.Systematic analysis of its financial data for the past five years;Chapter 4 predicts its free cash flow and discount rate by predicting the sales revenue of the company in the next five years,evaluates the company’s corporate value,and analyzes the evaluation results;The five chapters propose the strategy of HM company’s corporate value improvement;Finally,write the conclusions of this paper.