Case Study on Business Valuation – T Company as Example

• Main Authors: Yang, Chih-Kuang, 楊智光
• Other Authors: Chan,Chia-Chang
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/22984775524721503634

碩士 === 東海大學 === 管理碩士在職專班 === 99 === The main objective of this research is to use Discount Cash flow model to evaluate the right enterprise value of T-company. Upon study in this research, the finance report shows T-company operational performances are more outstanding than the other companies in foundry industry, such as 5 year-average of ROIC 24.59%, margin of revenue 34.26%，capital turn-over rate 66.16%，5-year-average ROE 21.49%。And cash flow turn-over rate、goods stock turn-over rate and year to year revenue growth rate are all higher than the other companies. The result of this valuation concludes that the prediction value of T-company is close to the price of monthly mean stock price of Taiwan stock market in January 2011. The factors of key drivers for operation strategy are first identified by sensitivity analysis with software program, The Decision making. The key factors of value driver are Ke, WACC, growth rate of revenue, and operational cost. There are two main points of recommendation to operation strategy. (1) To increase capital investment for developing advanced manufacture technology with R&D manpower and state of art equipments in order to sustain high margin of profit. (2) To increase debt ratio to enhance the manufacture capacity for foundry business. These are the most important operational tragedies to maintain the outstanding of competitiveness in foundry business.