Discuss the value of the company.

The existence value of an enterprise is to maximize profits and minimize costs. Drucker said that "the sole purpose of an enterprise is to create customers". Historically, most people think that "running a business is to make money". But in reality, many entrepreneurs claim that running a business is not to make money, but to realize great dreams or benefit the society. As far as most enterprises are concerned, their purpose is to make money. A gentleman makes money in a proper way.

The way enterprises make profits is also a means of making profits. There are many ways to make a profit. Every enterprise will have different choices, but what these means have in common is to meet the legitimate needs of customers. Only when customers' needs are met can customers buy the products or services of enterprises at a consideration, which is what Marx called "a thrilling leap from products to commodities". Some organizations or individuals have illegal needs, such as "pornography, gambling and drugs", and enterprises can still make profits by meeting this demand. _ _ _ _ But in the long run, meeting illegal demand is a means to eliminate customer demand, customers will be physically and mentally devastated, and enterprises will eventually be unprofitable. Therefore, it cannot meet its illegal requirements.

First, the definition of enterprise value

Free cash flow of enterprise value can be divided into free cash flow of enterprise as a whole and free cash flow of enterprise equity. Total free cash flow refers to the residual cash flow after deducting all operating expenses, investment needs and taxes before paying off debts; Equity free cash flow refers to the residual cash flow after deducting all expenses, taxes, investment needs and debt repayment expenses. Overall free cash flow is used to calculate the overall value of the enterprise, including equity value and debt value; The free cash flow of equity is used to calculate the equity value of an enterprise. The free cash flow of equity can be simply expressed as "profit+depreciation-investment".

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 enterprise free cash flow, the greater its value. We define the management aimed at enhancing enterprise value as enterprise value management. Enterprise value index is a widely used performance evaluation index of 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.

Second, the main form

From the perspective of financial management, there are many different forms of corporate value-book value, market value, evaluation value, liquidation value, auction value and so on. Objectively speaking, every value form has its rationality and applicability.