Dissertation
Dissertation > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods

M \u0026 A valuation studies based on discounted cash flow model

Author SongXiaoShan
Tutor HuYanJing
School Qingdao University
Course Finance
Keywords Mergers and acquisitions Value assessment Discounted cash flow model Bayi Iron \u0026 Steel
CLC F224
Type Master's thesis
Year 2007
Downloads 373
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A global perspective, the major capitalist countries have experienced five wave of mergers and acquisitions , with the constant improvement of China's sustained economic growth , mergers and acquisitions regulations and the continued optimization of the M \u0026 A environment , the wave of mergers is sweeping China . A very important part in the M \u0026 A process is the valuation of the target company , the valuation of the target company directly determines the bid . More importantly, through the evaluation process of the target company , the target company can have a deeper understanding , so as to more accurately determine the feasibility of mergers and acquisitions . Value assessment of the current mainstream method of discounted cash flow method , in summing up the literature on the basis of analyzes the discounted cash flow model in the enterprise value assessment process , a mergers and acquisitions value assessment framework . This paper argues that the enterprise value of the driving factors include the Return on Invested Capital and revenue growth . Effort should focus on the analysis of these two factors in the value of the evaluation process . Therefore, the article focuses on two main financial indicators of the value of the company . And the use of DuPont analysis will continue to be broken down . In the breakdown of the indicators , in order to avoid pseudo- precision , also adopted a simplified prediction . Bayi Iron \u0026 Steel historical performance and development of the entire steel industry , the future of the Bayi Iron \u0026 Steel were predicted. Qualitative prediction conversion value assessment for quantitative financial indicators , the use of discounted cash flow model . The conclusion that the result is much higher than the price given Baosteel , belong to the category of administrative allocation that Baosteel acquisition behavior . Speed ??up steel prices , iron ore prices have gone up speed and the weighted cost of capital of the company 's equity value derived by the sensitivity of the test is the most obvious.

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