Application of DCF Financial Valuation Model - Taking BYD as an Example

Jiachi Liu

doi:10.54254/2754-1169/22/20230289

Research Article

Open access

Published on 13 September 2023

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Liu,J. (2023). Application of DCF Financial Valuation Model - Taking BYD as an Example. Advances in Economics, Management and Political Sciences,22,71-77.

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Application of DCF Financial Valuation Model - Taking BYD as an Example

Jiachi Liu *^,1,

¹ China Agricultural University

* Author to whom correspondence should be addressed.

https://doi.org/10.54254/2754-1169/22/20230289

Abstract

With the rapid development of modern financial industry, the valuation methods for modern enterprises are becoming more and more diverse. However, the DCF financial model is still a relatively common and accurate one. This paper will adopt the DCF valuation method, which is one of the cash flow discounting-based methods, to valuate a Chinese new energy enterprise called BYD. The result of the valuation is 7.39 trillion yuan, which is about 0.6 trillion from the actual result. The result is slightly different from the normal valuation, because it is still affected by the fixed debt and the estimation error of the future inflation rate and China's growth rate.

Keywords

WACC, BYD, valuation, Discounted Cash Flow (DCF)

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References

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Cite this article

Liu,J. (2023). Application of DCF Financial Valuation Model - Taking BYD as an Example. Advances in Economics, Management and Political Sciences,22,71-77.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

Conference website: https://2023.icmred.org/

ISBN：978-1-915371-87-4(Print) / 978-1-915371-88-1(Online)

Conference date: 28 April 2023

Editor：Canh Thien Dang, Javier Cifuentes-Faura

Series: Advances in Economics, Management and Political Sciences

Volume number: Vol.22

ISSN：2754-1169(Print) / 2754-1177(Online)

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