A Case On Value Analysis Of Gome Electrical Appliances Holdings Limited

The appearance and development of the enterprise value theory has determined enterprise's strategic target and the policy-making judgment standard, and has laid the foundation of enterprise's value management and the investment decision-making. In domestic, the enterprise value appraised in the investment analysis, releasing stock for the first time publicly, the enterprise annexation reorganizations and managements. The importance strengthens day by day.After 22 years'development, Gome Electrical Appliances Holdings limited has become the largest home appliance company in China, and gradually formed its own characteristics and advantages of the operation, access to domestic and foreign media and won widely recognization of the public. Under the financial crisis, the investment outlook for Gome will meet what kind of impact, which is the focus of investors. Our work of this dissertation mainly bases on the Gome. We adopt the method of case study and take use of the qualitative and quantitative analysis-tool to evaluate the value of Gome. The paper firstly gives a brief introduction about background, objective, meanings and structure. Secondly, it presents fundamental methods of valuing a company also the procedure and the value related to the research, and the methods used in this paper. Next, we make the analysis about Gome in detail, and also make a careful study on management and financial states of Gome. At views of the macro-environment and industry situation, our national macro-economics policy and the main direct of the whole industry still benefit the Gome Electrical Appliances Holdings limited.Finally, this paper uses the Free Cash Flow Discount Model, EVA method and P/E method to ascertain the value of Gome, and make a reasonable valuation for small and medium-sized investors with investment advice and reference.