Valuation Analysis of Listed Brand Jewelry Companies Based on Free Cash Flow Model—Taking Zhou Dasheng (stock code 002867) as an example

DOI

10.2991/aebmr.k.220307.392How to use a DOI?

Keywords

Financial forecasting; Jewelry industry; The value of the entity; Free cash flow model

Abstract

Unsuccessful acquisitions usually occur in China’s jewelry industry. Because of this, according to the characteristics of the jewelry industry, this paper selects the free cash flow model to measure the value of the entity. Taking Zhou Dasheng company as an example, this paper introduces it by using Porter’s five forces model. According to the historical free cash flow data, the Grey system prediction model GM(1,1) forecasts the free cash flow in 2021-2024. This article comes up with an assumption where the free cash flow will grow at a constant rate after 2024. Sequentially, using these future free cash flow discounts to the present.

Comparing the market value of Zhou Dasheng with the value of the entity which was measured by the free cash flow model. When the market value is lower than the value of the entity, the shareholder should buy more Zhou Dasheng’s shares. On the contrary, the shareholder should sell this company’s shares.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Jiyi He
PY  - 2022
DA  - 2022/03/26
TI  - Valuation Analysis of Listed Brand Jewelry Companies Based on Free Cash Flow Model—Taking Zhou Dasheng (stock code 002867) as an example
BT  - Proceedings of the 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022)
PB  - Atlantis Press
SP  - 2395
EP  - 2400
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220307.392
DO  - 10.2991/aebmr.k.220307.392
ID  - He2022
ER  -