Abstract
The home appliances industry is an important manufacturing industry that reflects the consumption level of Chinese residents. Midea Group is the leading enterprise in the household appliances industry and one of the enterprises with high brand value in China. For Midea Group in the home appliance industry, this paper will apply the DCF model for enterprise valuation. This paper mainly uses the financial information of Midea Group and the discounted cash flow model for enterprise valuation. Then, the advantages and disadvantages of the DCF valuation model are analyzed through practical cases, and the overall valuation process is summarized. The company value of Media that valued by the DCF model is 384,922.89 million RMB. The analysis results show that the DCF model can better reflect the status quo of enterprise value, but in the process of DCF valuation model, it is not easy to predict the accurate amount of future cash flow. It also has limitations in industry and product selection, and its estimation of the risk rate is not accurate enough.
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