1. Enterprise value maximization goal
Enterprise value is the market value of the enterprise and the present value of the estimated future cash flow that the enterprise can create.
The financial management goal of maximizing enterprise value reflects the potential or expected profitability and growth ability of the enterprise, and its advantages mainly include:
(1) This goal considers the time value of funds and the risk of investment;
(2) This goal reflects the requirements of maintaining and increasing the value of enterprise assets;
(3) This goal is conducive to overcoming one-sidedness and short-term behavior in management;
(4) This goal is conducive to the rational allocation of social resources. Its main disadvantage is that the enterprise value is difficult to determine, especially for non-listed companies.