Evaluation Of Enterprise Value Based On Free Cash Flow Method

In recent years,M&A and restructuring of listed companies have become a hot spot in the capital market controlled by the IPO verification system policy.A large number of standard operating companies have emerged in the market.In accordance with the current laws and regulations,the value of the listed company shall be evaluated if it conducts merger and reorganization.Therefore,it is of great significance to establish a scientific enterprise value evaluation system and choose a reasonable evaluation method and model.The article reviews the enterprise value assessment theory and method,analyzes the advantages and disadvantages of the three main methods of enterprise value evaluation and condition,the cost method,market method and earnings method,studies the development of automobile and parts industry in our country and industry characteristics,analyzes the automobile and parts industry value evaluation method and model selection,proposes the discounted free cash flow model as an important method of enterprise value evaluation.The article analyzes and evaluates the financial status and enterprise value of SHQL Company by using free cash flow discount model.According to the characteristics of the new energy auto parts industry,the article focuses on the free cash flow discount model in the income method.The study finds that the free cash flow discount model is very good to verify the applicability and scientific rationality of the model.The research results show that the free cash flow discount model can reflect the value creativity of assets effectively,and has applicability and scientific rationality.