The Research Of Valuation Method For Listed Telecommunicaiton Equipment Vendor

The theory and method of valuation is very important to investmentactivity, a good valuation model with reasonable input parameter can help tofind the intrinsic value of a company and help investors to find invest chanceand avoid investment loss.This paper detailedly introduce the process of valuation, those factorswhich have strong impact on valuation, frequently used valuation method bythe industry, and analyze the features of telecommunication equipmentvendor and whether each valuation method can be applied on telecommuni-cation equipment. In the end, this paper selected right methods to value ZTEas example.This paper consists of5chapter, major contents of each chapter areoutlined as below:Chapter one is introduction, which introduce the background and thetarget of this research and the structure of this paper.Chapter two discusses how to value listed companies, which detailedlydescribe the concept of valuation, valuation process, and all kinds of factorswhich impact companies’ value. Cash flow discounted valuation, residualincome valuation, abnormal earning growth valuation and relative valuationare discussed in this paper, the theory, application condition, advantage anddisadvantage of those methods are analyzed.Chapter three discusses how use these valuation methods on telecom-munication equipment vendors, the feature of telecommunication equipment vendors, whether these valuation methods are applicable to telecommuni-cation equipment vendors and how to predict earning of telecommunicationequipment vendors are discussed in deep in this chapter.Chapter four selects ZTE as an example to show how to use these valua-tion methods.Chapter5summarizes the whole paper.