Stock Valuation Of Lijiang Yulong Torism CO., LTD

Compared with the Mature Securities Market in European countries and United States, the Securities market in China which was not established until1990is comparatively young. However, with recent reforms of China Securities market, especially the development of stock index futures and margin as well as improvement of short mechanism and market rules and functions, the K line investment technique relying on following the banker and rumors has gone. At the same time, some mature value investment ideas and empirical investment value analysis are being adopted by more and more enterprises and people with vision. Successful practices and theoretical development did not only provide investors with right guidance but also enriched experience for better regulating China’s stock market and capital market.Tourism industry in China has demonstrated great development space and it will continue to be promising due to favorable state policy and favors of the masses of the people. Taking above situations into account, the author selected " Lijiang Tourism" as the subject of this thesis. This thesis:preliminarily evaluated tourism development space from macro aspect through empirical research; combined the macro aspects which "Lijiang Tourism" resides in and the industry development trend with the capacity and development plan of the company; predicted the company’s performance in next few years on basis of this combined study; calculated the company’s value and summarized the calculations by adopting various valuation theory; conducted feasibility assessment for reinvestment by combining the assessment result of "Liangjiang Tourism" with risk coefficient of current stock market. It is concluded that the share price of "Lijiang Tourism" company is underestimated by more than20%and the company has investment value.After research, it was found that:"Lijiang Tourism" is one of the companies that constantly keep the gross profit rate stable and ranking among the leading places in tourism industry;"Lijiang Tourism" is one of the companies successful in mutil-polarity development. Its’share price fluctuates least and keeps steady rising trend after the rise and fall of the stock market; currently,"Lijiang Tourism" is small-cap stock. According to the development features of stock market, it possess the potential for rapid growth. To sum up,"Lijiang Tourism" has the characteristics of typical "Growth" company in stock market and thus possesses great growth potentials. With this advantage, the possibility that " Lijiang Tourism" gets state policy support and steadily occupies market share is increased.This thesis valuated "Lijiang Tourism" by using Company investment value theory, valuation and risk assessment under the framework of relative valuation method and absolute valuation method. The study provided some thoughts for " empirical research and utilization". Though further study is still needed, it is hoped that this thesis can provided methodological reference for investors and people interested in further research in this field.