Valuation of Yunnan Baiyao Group Company under Risk Conditions

Abstract

The main goal of this paper is to value Yunnan Baiyao Co., Ltd. under risk. First, the financial capacity of Yunnan Baiyao Co., Ltd. is evaluated using common-size analysis and financial ratio analysis. Then, the two-stage DCF model is used to value Yunnan Baiyao Co., Ltd. In this paper, Monte Carlo simulation is mainly used to simulate the future sales of the selected company. Next, the plan of EBIT, plan of depreciation, plan of ΔNWC , and plan of investment are constructed. After that, the weighted average working capital is calculated as the discount rate.

Description

Subject(s)

Two-stage DCF model, Monte Carlo simulation, Financial ratio analysis, SWOT analysis, WACC, Common-size analysis, FCFF

Citation