Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Series Vol. 22 , 13 September 2023
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With the rapid development of modern financial industry, the valuation methods for modern enterprises are becoming more and more diverse. However, the DCF financial model is still a relatively common and accurate one. This paper will adopt the DCF valuation method, which is one of the cash flow discounting-based methods, to valuate a Chinese new energy enterprise called BYD. The result of the valuation is 7.39 trillion yuan, which is about 0.6 trillion from the actual result. The result is slightly different from the normal valuation, because it is still affected by the fixed debt and the estimation error of the future inflation rate and China's growth rate.
WACC, BYD, valuation, Discounted Cash Flow (DCF)
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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