The Study On Stock Valuation Methods

The valuation of listed companies is the most important and critical part of Securities Analysis.This valuation plays an important bridging efect in the securities market analysis from macroeconomic analysis, capital market analysis,industrial analysis and financial analysis to the investment strategy proposal.It is also the basic point form acroeconomic,industrial and financial analysis as all the work ofers a basis for the company valuation so as to asist investment decisions and determine strategic preferences.Following the development of market economy, investment activities become more and more general,the critical thing to them is to valuate the company.The dissertation refer to this to form title and begin to research.At present, the average PE (price-earning) ratio of china is much higher than the developed and other new developing countries. Multi-factor valuation modeling of PE ratio explains the question mentioned above very well. The investors could still invest to the companies of high value and benefit from the fast growth of Chinese economy and securities markets, even if Chinese A share market connects with international markets in the future.There are four methods that investors usually use to value a stock, which are cash flow discount, PE ratio, and PB (price-book) ratio, and basic-factor multi-factor valuation modeling. These four methods have mutual elements, but advantages and disadvantages respectively. The investors usually choose one or more methods, however the result is different when choosing more valuation methods.Sany heavy industry is a listed corporation in A share, and has a healthy basic-factor and future growth. So I take Sany heavy industry as a case. I find that the valuation result is very different while using the four valuation methods combining with factor valuation method. The investors usually could not select the best method to value, and find the real value of a company. We should use different methods to value different companies, according to the companies' own condition and status.I find that the ability of estimation is highly enhanced when valuing Sany with these four methods. It is clear that weighted valuation method can value a company much reasonable and better than singal valuation method.