How to judge the intrinsic value of an enterprise?

The company value referred to in this paper refers to the intrinsic value of the company, which extends to shareholders' equity, and can also be called the equity capital value of the company.

According to the definition of intrinsic value of a company, the evaluation method should be discounted cash flow method.

However, in practice, there are more than a dozen methods to evaluate enterprise value, but in general, these methods can be divided into three categories: cost method, market method and discount method.

The cost method is also called replacement cost method, and the company value obtained by this method is actually the adjusted value of the company's book value.

Market rules? When the future free cash flow is really difficult to calculate, analysts often turn to the market.

Discount method (income method) is the most suitable method to calculate the intrinsic value of a company.