Research On Investment Value Valuation Of Real Estate Listed Companies

As an important macroeconomic carrier, real estate stability and orderly development greatly contribute to the improvement of people’s living standards, the stability of the market economy, promotion of sustainable development of the national economy.According to the analysis, in spite of strong state regulation, the real estate development and sales are still overheating; property stocks performed poorly in securities market, but enterprise business performance was impressive in its annual report released. Investors cannot evaluate the investment value of real estate listed company, and they are in trouble in making rational investment decisions.So this paper presents the following research purposes:First is to sort out the real estate industry and the impact factor on the investment value; Second, find out comprehensive ranking and intrinsic investment value of real estate listed companies more reasonable, which will lead to easy decisions for investors.This paper mainly uses a combining way of standard research and case study. The whole paper is divided into six chapters, as follows:The first chapter is an introduction. It presents the background, the significance, purpose of the research. Then it makes an expectation of the contribution.The second chapter is a literature review. This chapter sorts out Western business valuation theory as well as domestic investment value assessment practices.The third chapter is the theoretical analysis. This chapter analyze the theoretical basis of this study.Chapter four evaluates the real estate investments and an introduction of its evaluation methods. It first presents us the specialties of real estate companies. Then there is a comparative analysis of their market value through the residual income model which has been revised its theoretical value of investments The fifth chapter is a study of investment value of listed real estate companies. This chapter focuses on Poly Real Estate as a sample case study. Then use a similar approach for analysis of other samples enterprise value estimation.Chapter six is the conclusions, suggestions and limitations.The main conclusions and recommendations are as follows:First, the leading enterprises’market value is significantly lower than its intrinsic investment value, such as Poly Real Estate, Vanke Co. Ltd, Gemdale Corporation. It is subject to macroeconomic cycles, as well as national policy control and the wait-and-see attitude of market investors. It enjoy a high future appreciation potential, which makes it a good long-term investment options;Second, a few real estate companies, such as Jinke corporation, despite its rapid expansion in recent years in the industry and the market, e but have some potential crises that will cause huge losses, so investors need to be cautious when making investing decisions.The expected contributions of the article are as follows:First, sorts out the specialties of real estate company;Second, explains the contradiction between bad performance in the real estate market and outstanding operating results in corporate financial statements from a perspective of the typical pre-sale model, revenue recognition lag;Third, uses DuPont analysis system to revise the residual income model, quantitative the investment value of such real estate listed company, which helps investors’decision-making.