Zte Corporation In Shenzhen City Investment Value Valuation

During the process of the investment, it is important that investment evaluation acts as the finance support for investment decision. We can get an impersonal estimate of the project using some general methods in this field. Then, we can give the decision makers a reference consulting. From another aspect, with the continuous developing stage for a corporation, the corporation leader can adjust the developing strategy. This report gave ZTE an evaluation based on its developing stage, showing a value discovering process from the capital market view.The development environment will be described firstly and secondly, an analysis is made on ZTE's operation model and its financial report. Compared with the other two public companies of telecommunication equipment products, DATANG Telecom and Eastern Communication, ZTE has its competitive advantage. Finally, the paper values the ZTE at its business level. Business is dynamic developing process, usually composed of present business and growth opportunity. Therefore, valuation of an enterprise means dynamically valuing the combination of its present business and growth opportunity. In ZTE's business, data switching systems and access servers are rather mature, which are NO. 1 in the market share, resulting in the main revenues.Therefore, ZTE' value = value of data switching systems and access servers + value of new investing program.