Value Analysis On Shantui Construction Machinery Co., LTD.

After more than 10 years of development, China's securities market has made remarkable progress. As a typical traditional industry, construction machinery industry could well represent the status quo of China's most of the industries. The continuous expansion of foreign investment in China's market today, the current M & A has become the most important industry consolidation as a way. In recent years, the machinery industry deals frequent, and many of our historic leaders in the industry have become acquisition targets. Company is a comprehensive assessment of the value of the assets evaluation, the company overall economic value judgment, it is estimated that the process is mainly to obey or services on the company or the transfer of ownership of property rights transactions. Today, the acquisition of the target company's pricing is very importantly, the company's value analysis has been greatly expanded. But in China's construction machinery industry, managers recognize the value of the company for a relatively low level, and as a result of the previous valuation of the acquired company has been the focus of public debate.Based on the assessment of the modern company value theory, make the current use of the three main companies valuation model: discounted cash flow model, the price-earnings ratio model and options model for analysis. A comparison of their advantages and disadvantages and, in conjunction with the characteristics of construction machinery industry, choosing the discounted cash flow model to analyze construction machinery listed companies– Shantui. Construction machinery industry is a country's strategic industry, but also a type of investment-led industries. In introducing the profile of the industry, characteristics, this paper, the gap between China and foreign countries as well as international and domestic trends in the future development of the industry. In the company value analysis, firstly introduce the company background, then make the historical performance analysis, according to the goal of its capital structure calculations weighted cost of capital (WACC). Analysis of the sub-sectors, its current advantages, opportunities and risks, and carry out strategic analysis and vision. Then estimate the future performance, coming out the company value and analyzing the influence of changing of WACC and the growth rate of the core business in the value of the company. Based on the value assessment, financial management, and other theories as a guide, display the discounted cash flow method used to assess the entire process of the Shantui. Hope that the value of the company through the analysis of the specific use for equity investors to provide information and analysis to assess the value for the enterprise managers to provide a useful reference value management.