Abstract
This thesis adopts the Discounted Cash Flow Model DCF to assess corporate value of case company ─ H Motor Co., Ltd., based on automobile industry analysis, historical financial statements coupled with information realted to forecasts, and tries to find our where the case company can raise corporate value and its key value drivers by sensitivity test. The estimated stock price of Sales-Driven DCF is more close to the average stock price of case company, during Jan and May of 2013. This study propose the following 5 elements as the key value drivers for the case company’s future business – earnings growth rate, profit margin, sales growth rate, WACC and overall investment rate, and the first three of elements serve as key indicators which influence cooperate value. This study makes sevaral recommendations for futue managerial strategies to the case company from evaluative perspective. Improving earning growth rate and profit margin: Reducing sales cost. Controlling sales cost to avoid inappropriate waste. Shortening accounts receivable turnover days and reducing backlog of capital. Improving sales growth rate: Improving service quality. Enhancing customers’ loyalty to brand and repurchase rate. Improving production and sales of export markets.