Valuation Of Cosco Shipping Company

The valuation of company is the core issue of investment decision-making and management decision-making.According with the prosperity of global shipping market, shipping company's business and profit grow well, a large number of investment funds swarm into the shipping industry and a large number of enterprises make new vessels orders to expand capacity.However, periodicity and high task make lots of existing methods (NPV) can not be applied directly and bring investors and managers many inconvenience.Therefore,How to evaluate shipping enterprises accurately become a problem that investors and shipping companies pay great attention to. The study on valuation of COSCOL is of great guiding and practical significance to investors and managers.This thesis evaluates COSCOL by qualitative analysis, quantitative analysis and case analysis.First, study current economic situation and trend internal and external of shipping industry from three aspects, the dry bulk cargo transport, container transport and tanker transport. In terms of development objectives, strategies and competitive advantages, this thesis does qualitative analysis on the base of COSCOL. Secondly, base on financial data, this thesis analyze financial ratio to gain COSCOL's financial profitability, growth capacity, solvency and operational capacity. Then, after comparative analysis on likely valuation models, the thesis chose the FCFF(Free Cash Flow of Firm) model to evaluate real value of the company.Finally,we gain the result that value of COSCOL `s equity is 39.05 yuan per share while share price is 38.95 yuan,which prove the validity of the analytical results.Finally, by study on valuation of COSCOL, this thesis combined theoretical analysis and case analysis to find out applicable model to value Chinese shipping company and be a reference for investor and manager.