A Study On The Investment Value Of "New Three Board" Listed Companies

The "New Three Board" as an important part of the multi-level capital market,along with its increasing number of listed companies, diversified financing channels and increasingly active trading, it gathers more and more high-quality companies, so does investor high enthusiasm. However, the liquidity is so weak and the price-earnings ratio is so high in the "New Three Board", resulting in high investment risk. At the same time, the "New Three Board" has launched market maker system which has a natural defect leading to overvalued investment.Therefore, it is an urgent problem to guide investors to properly assess the value of investments in the "New Three Board" listed companies.Factor Analysis can be effectively integrated financial indicators and non-financial indicators to assess the investment value of the company comprehensively and objective, which is widely used in the field of investment valuation, and made extensive research results at home and abroad. At the same time, Factor Analysis can compensate for deficiencies of other commonly used investment valuation methods(eg discounted cash flow method, the relative value method and real options method) and meet the special nature of the "New Three Board" listed companies. Therefore, Factor Analysis is selected to assess the investment value of the "New Three Board" listed companies.Firstly, we analyze comprehensively the basic situation, financial situation and financial circumstances of the "New Three Board" listed companies and discover the investment value of the "New Three Board" listed companies in its fast growth and unlimited creativity. Moreover, work up the evaluation index system of investment, according to the characteristic of the "New Three Board" listed companies. Then, select three samples there are the "New Three Board" listed companies,the "New Three Board" listed companies of information technologyindustry and the board, small board, the GEM listed companies in the information technology industry to research, establish the total score model of the value investment, test and compare the results of Factor Analysis. So, there are three conclusions: First, there are more high-quality information technology industry listed companies in the "New Three Board" market and much higher investment value; Second, cash flow situation is the most prominent index affected the investment value of the "New Three Board" listed companies; Third, compare to the mature exchange market, the "New Three Board" as a new OTC market has great development opportunities and development space, but the overall quality of its listed companies is mixed. Finally, there are three recommendations for improving the weak liquidity problems found in the study: First, regulators should improve the "New Three Board" market system; Second, investors should be rational of investment the "New Three Board"; Third, the listed companies should improve their own value.In conclusion, the "New Three Board" high-quality listed companies of information technology industry are more worthy of investment, but investors need to pay attention to their solvency and profitability, followed by the company’s cash flow situation, operating and development capacity.