Valuation on Firms in The Same Industry: 7-11 vs. Family mart

• Main Authors: Lu , Ching-Ping, 呂靜萍
• Other Authors: Kao, Ming-Sung
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/61701183462403156341

碩士 === 輔仁大學 === 金融與國際企業學系金融碩士班 === 101 === The main objective of this research is to explore the business valuation on firms in the same industry:7-11 vs Family mart. The research in the two companies’ historic financial reports is to find out its characteristics and its use in the valuation model. The following step is to calculate the business value separately with cash dividend discount model, PE ratio method and free cash flow method, then calculated business values compare with the real share price of the sample companies and we use Theil’s U to be the evaluating target which the smaller Theil’s U is the better valuation model. The results of the study show that 7-11 should adopt one stage cash dividend discount model with five-year GDP growth rate and Family mart should adopt one stage cash dividend discount model with sales growth rate per store.