An Analysis On Investment Value Of ZiJin Mining

Currently the stock market in the United States, England etc., the essential investment principle is still the value investment principle.As we know, recognizing value is the basement of any investment activities. To evaluate a company's intrinsic value which is usually called analysis of investment value is not only a sort of science, but also a sort of art. Generally it takes complex knowledge and skills of economics, accounting, investment and management and so on. In fact, analysis of investment value is a procedure linking theoretical research with practical application to securities market.This thesis attempts to offer a complete evaluation lof the value of a stock and determine whether it is worth investmentint.The thesis will apply the evaluation process to Zijin Mining. First, it will introduce the Zijin Mining's backgound information, including macro environment, instudry, management, and financial standing.Accordingly, management efficiency and risk is estimated in order to find out the real value of ZiJin Mining later.Then, I use entity cash flow method, dividend cash flows method, EVA method and relative value estimation method to carry on estimating value analysis to the ZiJin Mining respectively, results of analysis show that the stock value of ZiJin Mining should between hk$5.14～6.68 per share. Then I compare the results of estimated value.Finally, I carry on investing risk analysis from subjective and objective aspects, comparing with the current stock's performance in stock market of ZiJin Mining, end result shows that it has the investment value.