The Suning Aplliance Stock Investment And Analysis

Since Suning’s initial public offer, the scale of the company have continuous expanded and the profitability of the company have also continued growth, Suning has been the first choice for high return in ShenZhen Stocks Market. However, in recent years, with the development of the online shopping industry, the impact on the physical offline store retail line is growing, especially electrical retail. Suning stopped the flying footsteps in2012, the2012net profit declined for the first time, the capital markets began to re-valuation of Suning Appliance. This thesis applied the classic stock valuation and analysis, the theory of free cash flow method is used, this thesis takes a combination of qualitative and quantitative analysis, in-depth study of the valuation theory, valuation and analysis of Suning stock. The thesis is divided into five parts. First, the classic method of valuation would be introduced, then the reason why the free cash flow method used as Suning Appliance valuation method would be analyzed; the second part is Suning Appliance Company’analysis, including the basic situation of the company, the offline store and online sales analysis, industry analysis, the company’s financial analysis. This is the third part of the basis of cash flow projections; Part Ⅳ would use the capital asset pricing model estimating equity cost of capital and forecasting WACC; Part V is the valuation conclusions and summary, By the Suning stock valuation analysis, the conclusion and deficiency would be obtained, compared with the actual value of Suning stock would give investors some reference as invest the Suning Appliance, it is also would provide a reference for the similar stock valuation and analysis in the similar industry.