Enterprise value assessment of OPPEIN home based on the free cash flow model

Abstract

In the past few years, the vigorous development of the real estate industry has led to the prosperity of home furnishing industry; the number of listed enterprises in this industry has also increased significantly. The purpose of this paper is to explore the applicability of the enterprise value evaluation method in home furnishing industry. OPPEIN Home is selected as the target enterprise to make the valuation analysis based on a free cash flow model. Through the analysis and prediction of financial data, the target price of OPPEIN Home is 106.33 yuan. Compared with the closing price of 114.62 yuan at the end of 2019, the market price of OPPEIN Home is in a reasonable range. It also verifies the applicability of the free cash flow model in the household industry.