Corporate Financial Analysis in Value Assessment: An Empirical Study Based on the Cash Flow Analysis Method

Corporate valuation plays a pivotal role in strategic decision-making, particularly in investment, mergers, and acquisitions. This study focuses on the application of cash flow analysis in value assessment, emphasizing its relevance and adaptability across diverse industries. By analyzing financial data and case studies, it demonstrates how cash flow metrics such as Free Cash Flow and Operating Cash Flow provide a realistic and forward-looking measure of a company’s financial health. The findings highlight the strengths of cash flow analysis in dynamic and stable sectors, while addressing challenges like data reliability and forecasting uncertainties. The study also advocates for integrating qualitative insights, such as management quality and market trends, to enhance the depth and accuracy of valuation. Practical recommendations for practitioners and directions for academic research are provided, emphasizing the need for innovation and collaboration in advancing valuation methodologies.