Value Evaluation of Moutai Group Based on FCFF Model

Harbin Finance University, Department of Accounting, Harbin, Heilongjiang, China

^* Corresponding author: Shulong Cai 1,b ,cslandcsl@126.com

Abstract

As the stock with the highest stock price in China, Guizhou Moutai is favored by the public investors, and also focused by the local and central governments. However, in the whole investment market, in order to deal with the problem of information asymmetry between enterprises and investors, any rational investor will try to obtain more accurate enterprise information and pay attention to the analysis and suggestions of professionals, so as to ensure the safety of their investment and obtain considerable profits. Therefore, in order to reveal the accurate situation of the enterprise value under the continuous growth of Moutai group’s stock price, provide investors with relevant decision-making basis, and provide useful reference information for the government departments to regulate the liquor market. This paper evaluates the enterprise value of Guizhou Moutai Group by establishing FCFF model and using the historical data collected, and then the actual value of Moutai Group is calculated and a conclusion is drawn. The research shows that: the growth of Moutai Group’s stock price is in line with the development trend of the enterprise and the industry, and the enterprise value has a reasonable support, which is not unreasonably high. At the same time, the analysis shows that the growth ability, profitability and development ability of Moutai Group are relatively strong, and the enterprise has a strong development potential in the future.