Business Valuation for Investment Decision

Yutong Hu ()
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Yutong Hu: Shanghai International Studies University

A chapter in Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024), 2024, pp 53-59 from Springer

Abstract: Abstract This paper will be based on a mature investment market with many investors. The diversity of investment products also provides investors with various kinds of choices. This paper will start from the business valuation perspective and then determine the right investment decision and results. This article will help investors avoid high-risk investments and achieve high returns by comparing the calculated value with the current value. This paper will use the Discounted Dividend Model and Free Cash Flow method to calculate the value of a particular company, the Shanghai Pudong Development Bank. The calculation shows that the company’s valuation is higher than the market value, so the company is undervalued. This paper uses two methods to calculate the business valuation and concludes. It applies theory to practice and offers realistic advice to investors. It helps companies and investors know more about the investment market and achieve their targets.

Keywords: Business valuation; investment decision making; Discounted Dividend Model; Free Cash Flow method (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-506-5_7

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DOI: 10.2991/978-94-6463-506-5_7

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