The Research On Southern Valve Project Investment Evaluation

In recent years, quite a large amount of private capital has entered the investment markets. At the same time, local governments have also begun setting up industry-guiding funds. The equity investment industry in China has reached the pinnacle. Nevertheless, as the international economy remains in the doldrums, China’s capital foam swells largely, resulting in a significant economic slowdown. In China’s equity investment market, there appears a phenomenon that a large number of investment institutions holding large sums of money are searching for projects, which leads to such a bad consequence that investment project prices are grossly overvalued, the IPO projects involving private equity investment institutions are set aside, and all the other similar unhealthy states. How to find high-quality investment projects has become the focus of the equity investment industry.This thesis, from the perspective of investment institutions, examines the investment feasibility of the enterprise "Zhuzhou Southern Valve Co., Ltd.", which is a fast-growing valve company. The study mainly discusses such research issues as analyzing the investment value of the southern valve projects, designing investment programs and post-investment management. All of the above undertakings equip us with a basic understanding of the specific operational process of the investment projects in our equity investment institutions. Meanwhile, we also hope to provide a certain reference to the investment institutions on screening out high-quality investment projects.Firstly, this paper exerts a thorough investigation into the southern valve industry in order to achieve a moderate analysis of the industry background, basic information, its products and markets, performance results, etc. The Boston Matrix model and other scientific methods are put into application to predict the future performance of the southern valve industry, reasonably and in a long-term. Next, based on the prediction of the future performance along with the Free Cash Flow Discount Method and the Relative Value Method, a reasonable evaluation of the southern valve investment project will be made to provide a solid theoretical foundation for both the investment program design and the investment income forecast. After that, some related recommendation of the managing improvement will be raised as well as the safeguard mechanism for avoiding the risks. In the end, a proper conclusion will be made to suggest that the investment institutions should invest in the southern valve.