| Under the Reform of Non-tradable Shares of the listed companies in recent years, full circulation is accelerating in China, and the stock market is stepping towards maturity gradually. In a mature stock market, the stock prices should represent the real value of the listed companies. According to the real rule of the market, the price should be fluctuating around the company's real value by"an invisible hand". No matter how it deviates from the intrinsic one, the price will finally get back to the value that the enterprise represents. In fact, if some of us face the stock market in an irrational mind, instead of making deep and full analysis of corporation's real values according to related macroeconomic environment, and weigh the stock market up, when it rises, we always chase just for the price, when it is down we give up easily, most of the time we will suffer substantial losses in this market, even more someone may hurt himself heavily. Therefore, it's essential for us to find practical analytic methods of firms'intrinsic values, to understand the stock market much better, to hold the market better and to find the real value in the changeable circumstances, so as to lead investors in stock market and provide references for their rational decisions.Just on the background above, I choose GuangXi GuiDong Electric Power Co., Ltd (GDEP) as my studying case. I make an in-depth analysis of GDEP's investing values, by the methods of theoretical and empirical study, quantitative and qualitative analysis, as well as the knowledge in my MBA courses, meanwhile I use my expeience when I used to be a staff in a instruction bank, and in my daily life, I usually discuss this kind of topic with some friends who work in the stock exchange institute, after the comparison of intrinsic values and various factors about the company. The paper firstly gives a brief introduction about the background, objective, meanings and structure, together with the achiements of local and international researches in this topic in my study. 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, I make the analysis about the electric power industry in detail, and also make a careful study on the management and financial states of GDEP, then by the means of free cash flow discount model and PE model, followed by a sensitivity analysis. At last, the paper gives the rational value block of the enterprise after some risk analysis.By analyzing the value of GDEP, the paper does an overall analysis on a listed company, in order to provide a practical method for valuing a company, which maybe of great help to investors. |
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