Case Study of Enterprise Value Assessment

Abstract

Along with the gradual advancement of the deepening reform of our country's socialist market economy and the further optimization of resource allocation, the restructuring, investment, acquisition and merger of enterprises are becoming increasingly frequent economic activities. The evaluation of the value of the target enterprise is one of the important links. This paper takes the small household appliance industry as the starting point, takes the small B Electric Appliance Co., Ltd. as an example, and uses the discounted free cash flow model in the income method to estimate its market value. It can reflect that this method is conducive to providing detailed and solid basis for value assessment relatively comprehensively from the aspects of enterprise profitability, profit quality, future profit sustainability, expected rate of return of the industry in which it is located, and time cost of funds, etc., and is widely used in the capital financial market and market information disclosure requirements.