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Valuation Analysis of Listed Brand Jewelry Companies Based on Free Cash Flow Model—Taking Zhou Dasheng (stock code 002867) as an example

Jiyi He
2022 Advances in Economics, Business and Management Research   unpublished

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Unsuccessful acquisitions usually occur in China's jewelry industry. Because of this, according to the characteristics of the jewelry industry, this paper selects the free cash flow model to measure the value of the entity. Taking Zhou Dasheng company as an example, this paper introduces it by using Porter's five forces model. According to the historical free cash flow data, the Grey system prediction model GM(1,1) forecasts the free cash flow in 2021-2024. This article comes up with an
more » ... on where the free cash flow will grow at a constant rate after 2024. Sequentially, using these future free cash flow discounts to the present. Comparing the market value of Zhou Dasheng with the value of the entity which was measured by the free cash flow model. When the market value is lower than the value of the entity, the shareholder should buy more Zhou Dasheng's shares. On the contrary, the shareholder should sell this company's shares.
doi:10.2991/aebmr.k.220307.392 fatcat:h4tobggv7zc53p6vdjljdwv4jy
Citation

Jiyi He. "Valuation Analysis of Listed Brand Jewelry Companies Based on Free Cash Flow Model—Taking Zhou Dasheng (stock code 002867) as an example." Advances in Economics, Business and Management Research (2022)