Enterprise Value and Discounted Cash Flow Model

Value maximization is the basic economic objective of modern companies. Discount ed cash flow models are designed and used to evaluate enterprises, for net cash flow embodies 'real revenue', reflects realization capabilities, and takes int o account the relationship between return and risk. However, this model puts too much emphasis on 'expectation', and applies the same evaluation criteria to d ifferent situations, thus giving rise to a variety of problems in practice. So t hat evaluation is closer to market value, it is necessary to rationally choose p arameters through different means and make necessary adjustments to the evaluati ng factors.