Authors : Saman Sheikhmoradi and Parastoo Sedaghat
Abstract: The aim of the present study is to estimate the value by using the free cash flow relationship of listed companies in Tehran Stock Exchange; therefore, free cash flow is a criteria for performance appraisal. In this study, the market value added changes criterion has been used to measure the value of the company. For this purpose, 121 companies have been selected from Tehran Stock Exchange through screening technique during a 7 years period from 1386-1392. The data has been collected through the companies’ financial statements published on the Tehran Stock Exchange site. For data analysis, multivariate regression analysis has been used. The results obtained from hypothesis test indicate that no significant difference has been observed between free cash flow and the company’s value. The results show that free cash flow does not have the ability to estimate the value of companies listed in Tehran Stock Exchange.
Saman Sheikhmoradi and Parastoo Sedaghat, 2016. The Estimation of the Value by Using the Free Cash Flow Method of Listed Companies in Tehran Stock Exchange. International Business Management, 10: 6281-6285.