Study On The Value Of D Enterprise Based On Free Cash Flow Model

With the gradual development and maturation of China’s market economy,the maximization of the value of the enterprise has become the goal of enterprise management.The measurement of the value of the enterprise can not be separated from the evaluation of the enterprise value.At present,the research hotspot in the theoretical circle and the difficulty of the capital market in China are how to be reasonable.Assess the value of the business.Enterprise value assessment can not only help investors make investment decisions,but also help managers conduct strategic analysis and make scientific decisions,thus improving business management.Based on the above background,first of all,this paper compares and analyzes the three methods of value evaluation using comparative analysis method,and concludes that the free cash flow model in the income method is a good method to evaluate the value of the company.At the same time,it also finds the free cash flow.The imperfection of the model lies in the determination of free cash flow in the future,and the prediction of free cash flow is highly subjective.This paper has improved this difficulty.This paper uses the case analysis method to analyze the value of company D as an example.The forecast model obtains the forecast results of free cash flow of company D,and then corrects the forecast results through the Markov forecast model,and tests the accuracy of the two models to make the prediction results more accurate.Secondly,this article compares the method of determining the discount rate and considers that the weighted average cost of capital method is a method of determining the discount rate of company D,and determines the discount rate of company D according to the actual situation of company D.Finally,this paper analyzes the influence of D company value driving factors,constructed the D company enterprise value driving factors analysis,from the increase in free cash flow,the weighted average cost of capital and optimize the forecast period three aspects puts forward some suggestions of promoting the value of D company’s enterprise.