Vanke Investment Value Analysis Reports

This report adopts the Discounted Cash Flow Approach to evaluate the investment value for Vanke Corp.. The value of Vanke is mainly rooted in the expected cash flow in the future. The growth of business will be increased slowly with the market competition gets more and more intense. However, being good at making competition strategies and the existing operations scope of Vanke will provide internal sustentation for its share price. The goal of evaluating is to estimate whether Vanke抯 shares price is overrated or underrated as diversified assumed conditions, with analyzing potential operations anticipation and the financial performance of Vanke.The results of evaluation shows that the total value of Vanke was 13 billion RMB when its Weighted Average Cost of Capital equaled to 9.69% at the end of year 2000. The internal value of Vanke is 22.04 RMB per share based on 631 million stocks by the end of year 2000. If we increase the Weighted Average Cost of Capital up to 12%, the internal value of Vanke is 16.55 RMB per share.In this case, it is worthy of an investment in Vanke Corporation.