Beijing-Shanghai High-speed Rail Project Valuation Study

Severe global macroeconomic situation and the severity of the financial turmoil should not be underestimated.In the grim situation of the global economy,China's economy has been subject to a certain extent.November 9,2008,Premier Wen Jiabao chaired a State Council meeting to determine the current expansion of domestic demand to further promote the economic growth of ten measures,the third measure is to speed up the railways,highways and airports and other major infrastructure.In this paper,to study the current economic context,of China's first investment since the founding of the largest construction projects - the Beijing-Shanghai high-speed railway valuation.In this paper,the theory of financial management operating cash flow net present value model,combined with China's current method of valuation applied in practice,by reference to comparable companies,using the weighted average approach to determine the main indicators of the weighted cost of capital WACC and growth rate g,within a reasonable range for sensitivity analysis of the data sorted out in accordance with the results of the Beijing-Shanghai high-speed rail project evaluation and analysis of value judgments.Results show that:The project is in the g greater than or equal to 10%and WACC of less than or equal to 17%of cases calculated NPV were significantly greater than zero,indicating the economic feasibility,the Beijing-Shanghai high-speed rail still has a investment value.By the Beijing-Shanghai high-speed rail project investment value of research,can be measured on the steady development of the project's positive macro-economic effects; can help predict the development trend of the investment market,thus making rational investment in science and an important reference value to judge;can effectively grasp the risk of investment,the investment risk on the control of great significance.