Research On Valuation Method Of Yongda Auto

Yongda Auto started its preparation for HK IPO since2011. Itinitiated global roadshow from May14,2012and planed to be listed onHKEX on May30,2012. However, IPO process was suspended all of asudden.According to the prospectus disclosed then, IPO price range fromHKD7.60per share to HKD10.80per share. Estimated maximum fundraising will be HKD3.157Bn.Two months later, Yongda Auto restarted its IPO process and gotlisted on July12,2012on HKEX. Finally,254million of new shares areissued to public and the IPO price is set at HKD6.60per share, or a6.5xP/E multiple based on2012estimated earningsThis essay is to discuss method of valuation for Yongda Auto andauto dealership industry and find a proper methodology for the industry...