Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)

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Business Valuation for Investment Decision

Authors
Yutong Hu1, *
1Shanghai International Studies University, Shanghai, China
*Corresponding author. Email: 0221122021@shisu.edu.cn
Corresponding Author
Yutong Hu
Available Online 2 September 2024.
DOI
10.2991/978-94-6463-506-5_7How to use a DOI?
Keywords
Business valuation; investment decision making; Discounted Dividend Model; Free Cash Flow method
Abstract

This paper will be based on a mature investment market with many investors. The diversity of investment products also provides investors with various kinds of choices. This paper will start from the business valuation perspective and then determine the right investment decision and results. This article will help investors avoid high-risk investments and achieve high returns by comparing the calculated value with the current value. This paper will use the Discounted Dividend Model and Free Cash Flow method to calculate the value of a particular company, the Shanghai Pudong Development Bank. The calculation shows that the company’s valuation is higher than the market value, so the company is undervalued. This paper uses two methods to calculate the business valuation and concludes. It applies theory to practice and offers realistic advice to investors. It helps companies and investors know more about the investment market and achieve their targets.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
2 September 2024
ISBN
978-94-6463-506-5
ISSN
2352-5428
DOI
10.2991/978-94-6463-506-5_7How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Yutong Hu
PY  - 2024
DA  - 2024/09/02
TI  - Business Valuation for Investment Decision
BT  - Proceedings of the 2024 4th International Conference on Enterprise Management and Economic Development (ICEMED 2024)
PB  - Atlantis Press
SP  - 53
EP  - 59
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-506-5_7
DO  - 10.2991/978-94-6463-506-5_7
ID  - Hu2024
ER  -