The Application of Free Cash Flow in Financial Analysis

摘要：

With the opening and growth of Chinas capital ma rket, investors are increasingly concerned about the risks and true value of companies, while income, cash flow from operations (CFO) and other traditional indicators used to analyze share prices are far from flawless. This paper provides a definition of free cash flow (FCF), and compares FCF with earning and CFO. Then it describes the advantages of FCF, and proposes a set of FCF-centric financial indicators based on the FCF valuation module. A case study is then made on a listed company to verify the reasonability of FCF. At last a conclusion is reached that FCF is a better indicator for the company to verify its value.

关键词： FCF FCF valuation model financial analysis

作者: Li Mengyu

作者单位: School of Economic Management, Beijing Institute of Petrochemical Technology, Beijing, P.R.China, 102617

会议类型: 国际会议

会议名称: 4th International Conference on Productinnovation Management(第四届产品创新管理国际会议)

会议地点: 武汉

会议语种:英文

页码: 1184-1188

在线出版日期: 2009-08-22（万方平台首次上网日期，不代表论文的发表时间）