Case Study on the Free cash flow model & Residual Earnings Model applied to Eclat textile and Makalot Industrial corporation

• Main Authors: Tai, Ming-Chun, 戴明君
• Other Authors: Wang, Sue-Fung
• Format: Others
• Language: zh-TW
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/2pc9ce

碩士 === 國立交通大學 === 管理學院財務金融學程 === 104 === The main objective of this research is to use Free Cash flow of Equity model (FCFE) and Residual Earning Model (RE) to evaluate the theoretical share value of two Taiwan listed companies− Eclat textile co., Ltd and Makalot Industrial co., Ltd . The methods estimate the theoretical share value which is compared to market share price for judging undervalue or overvalue for the current price and to select out the most appropriate valuation method for the two Companies. This study would also provide evaluating methods to the investors for decision making and investment. The main analysis findings are as follows: 1.Two evaluation methods were used to estimate the theoretical share value of Eclat textile Company. Residual Earning Model evaluates the theoretical share value is nearest to the market share price. 2.Two evaluation methods were used to estimate the Makalot share price. The study finds that the theoretical share value is higher than its market price. The market price seems to be undervalued by the market. 3.In terms of investment strategy, according to the results of RE evaluation mode, it is more suitable as a basis for the investment strategy.