The Application Of Value Analysis In Common Stock Investment

After20years of hard exploration, China’s stock market has achieved great progress:the market scale becomes larger, the number of individual and institutional investment becomes bigger, the market supervision system gradually becomes more perfect. And the corporate governance structure becomes more reasonable. For survival and development, Investors in the tortuous course have been struggling with different investment ideas and methods, so as to promote the development of China’s stock investment theories. The progress of the stock market and the development of the investment theory, also provides conditions and opportunities for the application of value investment in China’s stock market.In this article, we put forward the concrete invest operation method based on the research of the value investment theory and analysis method, combining with different investment objects. This article aims to reveal the deep meaning of the value investment idea, to provide practical value analysis method for the investors. This article will be discussed according to the following steps:firstly, briefly describe the development of major stock markets at home and abroad; Second, introduce the value investment ideas and the main theory ideas; Third, introduce the value analysis methods; Fourth, introduce investment operation strategy; Fifth, the concrete analysis of the value investment.In this article, the understandings of the investment and speculation, and the realizes of the stock market is different and innovated, the fundamental difference between investment and speculation is the substance rather than the form. And the stock market is an invalid market, most of the participants are looking for the market profits, so it determines the main melody of the market is speculation. The investment value we advocate in this article not only bases on the enterprise’s intrinsic value, but also combines the market price of the enterprise, it can combine theory and practice organically, and it is the rational investment on the basis of the rational analysis, it is helpful guiding the investors to make rational thinking and investment.This article argues that the root of the stock investment is looking for high quality enterprise, and can hold shares in the company at the right price. To find a high quality enterprise, it must have a correct value analysis method; To buy the stock of the target enterprise at the right price, it must look for a safety margin of buying opportunities big enough, based on the evaluation of enterprise internal value. This article also analysis and demonstrates the concrete application method of value analysis with instance, it has a certain practical significance.