Jiangsu Sms Company Investment Value Analysis

This paper assesses the potential investment value of Jiangsu SMS that on the view of venture capital. This company is high-tech forestry enterprise and the main business is salinity seedlings planting and sales which combined with the saline-alkali soil improvement innovative. Judging from this company’s development, it transits from the start-up stage to the growth stage. On the industry point of view, this company using the innovative technologies and models to operate traditional forestry. Such feature enterprise attracted the attention of venture capital firms greatly. The purpose of this paper is on the research of SMS Company whether worth to invest.This paper demonstrates the investment value of SMS from the aspects of qualitative and quantitative. The qualitative aspect is mainly through the internal value chain analysis to identify the company’s core capabilities is its leading technology in breeding and planting Zhu Liu and the improvement of saline-alkali soil. My paper through the Potter’5competitive forces model, SWOT analysis and some other relative theoretical conclude that SMS enterprise will has the strong profitability in the future for it meets the macroscopic direction of state and local government.The quantitative aspect is using absolute valuation method and relative valuation method respectively to evaluate the enterprise value and analyzed the different results. The result concludes from relative valuation method in deciding whether to invest in SMS Company is more significance.In addition, my essay do the sensitivity analysis on the internal rate of return on investment, briefly reveals investment risk may face and put forward some strategies for the control of risk.In this paper, the significance of the value evaluation theory lies in absolute valuation method is not suitable for those high-tech enterprises which in start-up period, because of the results are easily influenced by industry market environment. The applicability of relative valuation method is strong, but vulnerable to financial market environment, so the results should be adjusted properly. This thesis is evaluated through a variety of methods for risk investment institutions to find out the valuation of the company that have reference significance, provides a strong basis for investment decision.