Fonte: Journal of Tourism & Development; n. 7,8 (2007); 197-206
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Resumo: In Taiwan, leisure industry is currently one of the core industries and plays an important role in economic contribution to the country. However, most investors are unfamiliar with this industry and its value, causing uncertainties in financing and its sustainable development. The aim of this research is to estimate the intrinsic value of selected company – Kentington Resort by three discounted cash flow models, i.e. dividend discount model, free cash flow to equity model and free cash flow to firm model. The research findings show that two free cash flow models are more appropriate while valuing Kentington and current market prices reflect basically its intrinsic value. In order to examine the stability of the valuation methodology, a series of sensitivity analyses are also taken in the end. By referring to this investment valuation process, managers and investors could improve the quality of their decision making and investment.
