| dc.description.abstract | This thesis mainly focuses on the case study of Company A, an equipment manufacturer for the LED industry, aiming to perform valuation for the company based on valuation methods, industry analysis as well as information relevant to the financial projection of the company. The case study adopts the discounted cash flow method to evaluate the enterprise value of company A. In addition, sensitivity analysis and scenario analysis was performed and suggestions to increase enterprise value were proposed.
The result showed that the book value per share is NT$40.51 while the P/B ratio and P/E ratio based on the industry average estimate the value per share to be NT$42.28 and NT$56.81. In order to prevent overly optimistic valuation, sensitivity analysis was conducted. It was discovered that the main factors affecting enterprise value is revenue growth rate. The scenario analysis shows that under the expected probability of pessimistic assumptions, the expected book value of equity is lower than the baseline situation. As for the establishment of the R&D center plan, it will bring positive effects to the book value of equity.
Some operational suggestions were proposed for Company A. For example, provide valued and quality product by seizing business opportunities, establish a comprehensive supply chain and use discounted cash flow method as the basis for future financial planning. This study estimated the expected equity value of the company based on reasonable assumptions financially and operationally. This should assist the company to respond to market demand, improve operational efficiency and hence increasing the enterprise value. However, the conclusions drawn from this case study cover neither drastic changes in the overall economic outlook nor internal operational disputes such as equity agent issue. | en_US |