Sources of value of business capital operations

Best (best) use value of tangible assets;Replacement cost value of tangible assets;Value of identifiable intangible assets;Value of unidentifiable intangible assets;Value of bankruptcy liquidation. Value of tangible assets in bankruptcy liquidation.

Enterprise value refers to the value of the enterprise itself, is the enterprise tangible and intangible assets value assets market evaluation. Enterprise value is different from profit, profit is the market value of all assets of the enterprise in the value of the creation of a part of the value of the enterprise, enterprise value is not the total value of the enterprise book assets, due to the existence of the enterprise goodwill, usually the actual market value of the enterprise is far more than the value of the book assets.

Enterprise value:

Free cash flow can be categorized into the overall free cash flow of the business and the equity free cash flow of the business. Overall free cash flow is the remaining cash flow of a business after all operating expenses, investment needs, and taxes are deducted and before debt is paid off; equity free cash flow is the remaining cash flow after all expenses, tax payments, investment needs, and debt service payments are deducted.

Overall free cash flow is used to calculate the value of the business as a whole, including the value of equity and the value of debt; equity free cash flow is used to calculate the value of equity in the business. Equity free cash flow can be simply stated as profit depreciation investment. As can be seen from the definition of enterprise value, enterprise value is positively correlated with the free cash flow of the enterprise, which means that, ceteris paribus, the greater the free cash flow of the enterprise.

The greater its value. We define the management with the goal of improving enterprise value as enterprise value management. The enterprise value index is the performance evaluation index commonly adopted by leading enterprises in various industries in the world, and free cash flow is the most important variable of enterprise value. Because of their own objective attributes, enterprise value and free cash flow are replacing traditional assessment indicators such as profit and income in an increasingly wide range of fields, and have become a topic that modern enterprises must study.