What does the enterprise's own value include?

every company has its own value, and value evaluation is the judgment of the participants in the capital market on the value of a company at a specific stage. Entrepreneurs seeking venture capital say how much money I want to finance and how many shares I want to sell. But nine times out of ten, I can't answer how much the company is valued and how many shares are sold. In reality, entrepreneurs need financing, and enterprise valuation is one of the most important lessons. Because if this link is not done well, financing is easy to fail. Because price is always an important aspect that affects the investment decision of venture capitalists, and it is also the best carrier to reflect the value of start-up enterprises. What is enterprise value? Financial economists define enterprise value as: the value of an enterprise is the present value of the expected free cash flow of the enterprise discounted at its weighted average cost of capital, which is closely related to the financial decision-making of the enterprise and reflects the time value, risk and sustainable development ability of the enterprise's funds. Extending to the field of management, enterprise value can be defined as the ability of enterprises to follow the law of value and make all stakeholders (including shareholders, creditors, managers, ordinary employees, government, etc.) get satisfactory returns through value-centered management. Obviously, the higher the value of an enterprise, the higher its ability to give returns to its stakeholders. And this value can be measured by its economic definition. According to the definition of enterprise value, enterprise value is positively related to enterprise free cash flow, that is, under the same conditions, the greater the free cash flow of an enterprise, the greater its value. We define the management aimed at enhancing enterprise value as enterprise value management. Enterprise value index is a performance evaluation index widely used by leading enterprises in various industries in the world, and free cash flow is the most important variable of enterprise value. Because of their objective attributes, enterprise value and free cash flow are replacing traditional evaluation indicators such as profit and income in more and more fields, which has become a subject that modern enterprises must study. Whether an enterprise has growth potential and market space, we can know its basic value by looking at the price of private placement. In a perfectly competitive market environment and information symmetry, the financing price of an enterprise basically corresponds to the true value of the enterprise. Why are two companies with similar business and performance, if one of them made a round of external financing a year ago, then its value today is often significantly higher than that of the other company that has not made financing? Because taking free cash flow as the evaluation index and considering the cost of capital and the viability of the enterprise comprehensively, the management of enterprise value can be realized, which defines the long-term interests of the enterprise, determines the distribution direction of strategic resources of the enterprise, effectively controls the behavior patterns of enterprise members, and enhances the ability of the enterprise to adapt to and influence the environment. The high or low value of an enterprise depends mainly on its free cash flow. Many bosses of private enterprises always show off the assets of their enterprises. Although the value of enterprises has nothing to do with the assets owned by enterprises, it has little to do with them. Cash is king, which is the last word for thousands of years. /html2/27-8-15/publish45645.htm