Enterprise Valuation Based on UFCF Discount Model Take Changyu A as an Example

DOI

10.2991/icssr-13.2013.181How to use a DOI?

Keywords

Enterprise Value; UFCF model; Changyu A

Abstract

With the rapid development of China's capital market, the enterprise valuation becomes more and more important. In China, the discounted cash flow method is the most widely used method in the practice of enterprise valuation. This paper researched the related theories of unleveraged free cash flow discount model and assessed the enterprise value of Changyu using this model through historic data analysis, financial forecast, and valuation process. The results show that the UFCF model is effective and it still has some disadvantages in practice such as the difficult satisfaction of assumptions, the subjective forecasts and the result’s sensitivity to discount rate and terminal value.

Copyright

© 2013, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaohua Song
AU  - Chen Qi
PY  - 2013/07
DA  - 2013/07
TI  - Enterprise Valuation Based on UFCF Discount Model Take Changyu A as an Example
BT  - Proceedings of the 2nd International Conference on Science and Social Research (ICSSR 2013)
PB  - Atlantis Press
SP  - 784
EP  - 787
SN  - 1951-6851
UR  - https://doi.org/10.2991/icssr-13.2013.181
DO  - 10.2991/icssr-13.2013.181
ID  - Song2013/07
ER  -