ABSTRACT
The main objective of this research is to explore the business valuation on firms in the Familymart. The research in the companies’ historic financial reports is to find out its characteristics and its use in the valuation model. The following step is to calculate the business value separately with cash dividend discount model, PE ratio method and free cash flow method, then calculated business values compare with the real share price of the sample companies and we use Theil’s U to be the evaluating target which the smaller Theil’s U is the better valuation model.
The results of the study show that Familymart should adopt one stage cash dividend discount model with sales growth rate per store.
