The Applied Analysis Of Value-Investment In Security Market

All investors in the capital markets were seeking and pursuing the rule of future since the market established.Efficient Market Hypothesis (EMH) and Random Wander were brought forward successively. For the market price anticipating, the analysis was separated to Elements Analysis and Technical Analysis. However, Value Investment deemed that the conjecture of stocks'prices was worthless. The importance of investment in the capital was analysis of corporation management and its achievement.They figured, stock price reflected its intrinsic value which included the corporation's management efficiency and the deviation appeared frequently but never divorced its basement in long-time. The task of investors was investigating on financial affairs as well as any information from the corporation. Found the worth and bulled before the market responded.In the thesis, I extended the range of Value Investment which contained some part that belonged to Increasing Investment. As for the rule of market, I accepted these ideas. A: The price of market was based on managing achievement; B: The capital had validity for the information in long-round, but it often lost its mind in near future; C: Investors'behavior was not always rational and understandable. Above this conclusion, I discuss the EMH and brought up a word of Market Reflection Process which was pointed to market response to information, its time-length, spectrum, depth and route.The key of Value Investment theory was estimate for the intrinsic value. The method was Discount Model, Relative Multiply Method or EVA Model. The Discount Model and EVA Model had their limitation. For the weak investors, Relative Multiply Method had more practicality.In the end of paper, I summarized the strategy of Value Investment, the selection of stocks and principle of investing. With the theory about intrinsic value I make an example: comparing of two companies which were JIANGXI COPPER COMPANY LIMITED and YUNNAN COPPER CO.LTD.This study comprised most parts of Value Investment, from theoretic to the practice in the capital with the wish of help to weak investors in our capital.