The Analysis Of The Investment Value Of Huafa Industrial Co.,Ltd.Zhuhai

After decades developing, China’s stock market had 2592 companies on list and the total volume reach 3.71 trillion yuan at the end of 2014. Though the amount of list companies and trading volume are growing day by day, the institution construction and the enterprise value appraised do not keep up with the pace of the stock market’s developing.The stock market is affected by various factors. Without a well training of financial and economic, most individual investor prefer to the volatility, actively traded stocks, and are easy to follow the trend of speculation. They are the vulnerable group of the stock market, most of them are suffering severe loss.Due to the complexity and technicality of the enterprise value appraised, the individual investors rarely make decision base on it. This paper chose Huafa Industrial Co., LTD. Zhuhai as a research object, using Free Cash Flow Model to appraise its value. Hoping that this research work would do some good on spreading the company’s value analysis, making value-oriented investment decisions, and spurring the stock market back to a reasonable place.The first part of this paper describes the background of the study, explained the purpose of the study, and presented the technical route of this study. The second part is an introducing about the method of valuation analysis. The third part is about the real estate industry background, the current situation and the macroeconomic environment introduction. The fourth part introduces the basic situation of Huafa and analyze its financial situation. The fifth part, is about the analyses of Huafa’s advantages and disadvantages. Part VI, financial forecasts and valuation. Part VII, come to a conclusion.