Value Of S Company Based On Free Cash Flow Method Evaluation Improvement Study

With the continuous development after China's reform and opening up,as an industry closely related to people's livelihood,China's food industry is highly valued by the government departments.With the rapid growth of market demand and the continuous innovation and progress of science and technology,the overall development is in good condition.With the economic development entering a new normal,the overall growth of the food manufacturing industry market slowed down,and the market sales situation showed a steady and rising state.In recent years,the development of the domestic food manufacturing industry has maintained a healthy state of development,production growth is generally relatively stable,and industry benefits have been continuously improved with the optimization of industrial structure.With the continuous development and progress of the industry,the frequency of mergers and acquisitions between enterprises has become higher.Whether it is from the perspective of acquired companies or acquisition of enterprises,the results of fair and objective enterprise value evaluation cannot be underestimated.In this context,the thesis firstly reviews the theory related to enterprise value assessment and the research status at home and abroad.On this basis,it expounds the theory and model of free cash flow method,and proposes some suggestions for the defects in the model.To lay the theoretical foundation for the next practical application.Secondly,through the combination of case analysis method,the development environment of S company is analyzed from two aspects of industry status and core competitive advantage of the company,and the current financial status of S company is analyzed.Through a comprehensive understanding of the current situation of the company,lay the foundation for the estimation of the value of S company below.Then,it analyzes the choice of S company value evaluation method and the feasibility of free cash flow method application.Based on the selection of two-stage growth model,it refers to the company's historical financial statement data for the past three years to predict the future free cash of S company.Parameters such as flow rate,dynamic discount rate,etc.,to estimate the overall value of S company.Finally,the paper analyzes the rationality of the evaluated S company value,states the conclusions drawn from the case study,and proposes countermeasures for the theoretical defects and difficulties in the free cash flow method.This paper points out the problems existing in the evaluation of enterprise value based on the free cash flow model and proposes improvement suggestions.Then,the improvement proposal of discount rate is applied to the specific case analysis,which improves the scientific,objective and reasonable evaluation results.The value assessment of food manufacturing companies provides some advice.