Abstract: The Chinese economy has been developing rapidly in the recent years.Consequently,the steel industry has been benefited as the increasing demand of iron and steel.Also,under the Chinese government's proposal to "prosper the old industry base in the northeast provinces",the steel mills in this area get an excellent opportunity for their future development.This article,taking AnGang Steel Company Limited as an example,uses the Free Cash Flow Model to estimate its enterprise value morder in order to facilitate the investors and managers in their decision-making processes.