The Application of Discounted Cash Flow Model in Company Valuation — Taking Gree Electric Appliances as an Example
Year: 2024
Type: article
Abstract: With the rapid development of the economy and the significant improvement of people's income level, the demand for investment is also becoming increasing strong. Choosing a scientific valuation model is beneficial to reduce investment risks for investors. Gree Electric Appliances is a well-known household appliance company in the world. Although its growth is currently sluggish, it has stable and sustainable operating capabilities and good operating conditions, can generate a large amount of cash flow, and has a high dividend yield. This paper uses the discounted cash flow model to value the company. Selected financial data of Greeley Electric for the years 2018 to 2022 and and the company’s intrinsic value and share price are assessed based on its annual free cash flow. The expected research results indicate that the valuation model, as a judgmental tool, can help investors to assess the investment value and potential risks of Greeley, thus providing data support and expected reference for making investment decisions on Greeley's shares.
Author: Yuhang Wang
Institution: Xi’an Jiaotong-Liverpool University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4405590378