Financial Street Holding Investment Value Analysis

After the outbreak of the financial tsunami, despite the fundamental basic of the real estate industry have not tottered, the tremendous rigid demand for self-live and improvement still exists, the long-term trends of the real estate industry running has not changed , the market's worry for macro economy deteriorating and the industry facing adjustment is increasing day by bay and the market's judgement for the real estate listed companies' investment value have lost to some extent. This article attempts to use the asset revaluation present value method which is based on the realization of free cash flow to judge the investment value of real estate companies, and use the assumption development method to assess the free cash flow value brought from developing the real estate projects.This article firstly intruduces the general situation of the domestic real estate industry in details and conduct a certain analysis for its operating characteristics and the forecast for the future trend. Secondly, in the light of the operating characteristics of real estate company, this article proposes an analysis method which suits for evaluating the real estate listed company's investment value, namely asset revaluation method which is based on the conversion of free cash flow. This article also introduces the theory and process of the assumption development method of free cash flow by a scientific measurement way in details. And then according to the company capital cost and the real situation of the project, this article uses the assumption development method to acquire the achievable net profit of all development projects and convert to a present value at the evaluation time point. As a result, it achieves the re-evaluation net present value and the inner investment value of the company in evaluation time point. Lastly, according to market forecast, this article conducts a limits testing and offers a investment proposal, and makes a comparison with the company's stock price performance to verify the rationality of all of the method and the conclusion.The possible creation of this article is that use the scientific method of real estate assessment to forecast the free cash flow which is able to be generated from real estate listed companies and judge its investment value according to the company inner value achieved from this.