A Case Analysis On Value Assessment Of Zhongxing Information And Communication Company

The popularity of capital manages is a great leap for the Chinese business circle that make for value manages form material object. During this leap, seeking the value increase has become the new enterprise operation objective。How to appraise public company's actual value? Not only it is an important topic searched after long-term by securities business, but also it is the investors'most concerned issue under the mature market environment day by day. Providing a feasible method to solve this problem is this paper's purpose.Being one of the best telecom equipment producers,Zhongxing information and communication company (Zhongxing Co. for short), as listed at Shenzhen Securities Exchange Store in 1998. Owing to the development and business of company is a certain representative with novel, the writer analyzes and measures the value of Zhongxing Co., quoting from classic of worth valuation theories and method.This paper makes a quantitative analysis using financial performance appraisal method and cash flow analysis. Firstly, this paper reviewed the existed corporation evaluation theory. Secondly, this paper analyzed the advantange of Zhongxing Co. based on development of the trade. The paper also conducts the financial performance using classic financial ratio, Du Pont's ratio quality analysis. The results show that the financial condition of Zhongxing Co. is well, the major business income increases progressively year by year, and debt paying ability is good. From analysis of future profit ability and the evaluation based EVA method, Finally, the article objectively makes a conclusion: generally, Zhongxing Co. will gain the increasing profit and has a good profit prospects favorable.