Based On The P/E Ratio Model To Take The Valuation Analyze With ZTE Co.,LTD

In recent years,Chinese financial capital markets become more and more mature gradually. Analysis method of investment value of companies is also placed in the heart of the company's analysis.On international company investment value analysis theory are:the Free cash flow model, the P/E ratio model and Residual income evaluation model.In past few years, stocks in communication and information field often have satisfactory performance in domestic stock market. So this article focuses on the reasonable investment value analysis and assessment of the leading enterprise in communication and information industry--ZTE Co., LTD based on the P/E ratio model.Firstly, this paper illustrates the company's investment value analysis methodology by explaining the concept, the formula, and the practical aspect briefly; Then focuses on the macroeconomic environment, industry background and the company's own operation and capital structure of ZTE Co., LTD; As followed, assesses and verifies the value of stock investment in last two years by the P/E ratio model with ZTE's actual financial data; At last, this paper makes the summary with research results, insufficient and inspiration.