Analysis Of The Investment Value Of Baosteel

How to conduct effective makes many small investors’life more puzzle. Facing the opportunity and risk of the stock market, adhering to the concept of investment is the first choice for investors to make. This paper hope to form a relatively complete, practical value investment analysis evaluation system, guiding the small and medium-sized investors analysis and decision making.First, it is proved that value investment is feasible. Based on "the limited rational person" premise, it reveals the behavior of value investment. Non efficient market is a necessary prerequisite for the existence and development of the value investment theory, on the other hand, value investment which is in Non efficient market Can play a role. Value investment and Non efficient market is the relationship of unity of opposites.Secondly, It is a necessary condition to construct value investment’s fundamentals. From the points of the listing Corporation’s external environment, industry management, core competence, especially financial status, they construes fundamental analysis necessary system.Thirdly, Based on the fundamental analysis, Method is proposed to assess the value of the listing Corporation, which is to ensure the safety of principal and an adequate margin of safety.Fourthly, Through the analysis of Baosteel fundamentals and to assess the value of their investment, whether it satisfies the necessary condition of value investment.This paper constructs a set of value investment necessary system, according to the value of the investment necessary to choose the listing Corporation, can guide investors to make scientific investment analysis and decision, which can find value trap large, obtain higher than the market average return on investment. According to the value of the investment necessary to value investment system of Baosteel is analyzed. In Chinese stock value investment practice, has certain representativeness.