Advances in Economics, Management and Political Sciences
- The Open Access Proceedings Series for Conferences
Proceedings of the 2023 International Conference on Management Research and Economic Development
Series Vol. 24 , 13 September 2023
Open
Access | Article
Application Analysis of DCF Model in Enterprise Value Evaluation: A Case Study of Midea
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Abstract
With the development of markets of household electric appliances and the extinct sales performance of Midea, Midea should be viewed as a good example to explore. Many company values are overstated or understated, which has caused major problems for the stability of markets. Therefore, the author made an effort to determine the company's value so that it could be compared to its market capitalization to determine whether it is underpriced or overpriced. And in order to do that, the company was examined using the discounted cash flow (DCF) model. It was discovered that the market price of Midea should be around 384.92 billion CNY, which is slightly higher than its actual market capitalisation. As a result, although there might be some deviations made by some other factors, that might indicate that Midea has been marginally underpriced in the market.
Keywords
midea, discounted cash flow model (DCF), value evaluation, market capitalization
References
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Data Availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2023 International Conference on Management Research and Economic Development
- ISBN (Print)
- 978-1-915371-91-1
- ISBN (Online)
- 978-1-915371-92-8
- Published Date
- 13 September 2023
- Series
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- 2754-1169
- ISSN (Online)
- 2754-1177
- DOI
- 10.54254/2754-1169/24/20230422
- Copyright
- 13 September 2023
- Open Access
- This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited