A Study On Investment Value Measuring Of Listed Companies In Growth Enterprise Market

This is a study on investment value of listed companies in growth enterprise market (GEM) of China. It gets a new vision of the operating of securities investment by analysis about classical theories and methods of corporation value measuring.Companies in GEM have characteristics of 2 "high" and 6 "new" (High growth, High Tech, New economy, New serves, New agriculture, New material, new energy resources and New business patterns). It is useful to consider the uncertainty and high-growth of these firms. Measuring investment value of listed companies should choose appropriate models and check the characteristics of corporations carefully.This paper builds a system of measuring investment value of listed companies in GEM. First, an analysis of the cardinal conditions of companies in order to a basis estimate. Second, it's should to measure corporation's value by the Model of Free Cash Flow of Firm (FCFF). Third, you can make an additional investigation about the chance value by the Model of Real Option. Fourth, it is a necessary step to measure the value of uncertainty with the probability methods in company's growth. A typical case is TEIREIDE (Qindao TGOOD Electric Co.), a company whose number is "300001" in GEM. This measuring system can be tested and the technique of measuring can be adopted by this case. It is very correspond between cardinal value, real option value, probability value and the company's IPO price, securities-given-price, highest market price.This paper also gets a conclusion that the great rise and fall of stocks in GEM instead of MEM(main enterprise market) is because of the different expect about companies'growth, the factors of price-manipulation, the different psychology of exchange, and the discrepancy of policy anticipation. The difficulty of measuring comes from the uncertainty of future, the imperfection of information, limited-rational of human. An excellent investment in GEM means a better research of listed companies'basis and growth, policy conditions, market information, and exchange skill.