The Research of Financial Forecasting and Valuation Models

Abstract

Financial analysis has always been a particular focus of scholars around the world. With the development of economy, domestic and foreign scholars continue to improve their financial analysis methods. However, there are few literatures to study the development process of financial analysis and the important factors that affect enterprise value. Based on this situation, this paper systematically reviews and sorts out the relevant research results of the origin and the development of the financial analysis. Then it introduces the driving factors of the enterprise value from financial and non-financial aspects and the valuation methods that are concerned mainstream. At the end of this paper, it raises potential problems with current mainstream valuation methods by comparing the calculated results with the actual results and put forward the possible improvement direction to solve these problems. Hope this paper can provide useful reference for scholars to further study this problem.