An Empirical Analysis Of Growing Company Premium Valuation

Stock investment is a rational analysis of the value of the investment company, at a reasonable price to buy, to follow the activities of the enterprise growth get good return, to the enterprise value, to determine the reasonable price of the stock investment is the first step. In reality, no matter from the various countries the observation of the capital market, or from different period of observation, which is both transverse and longitudinal, common growth relative value shares all of the premium valuation, in economy, the rise in the overall market, can be observed that premiums rise further, but there is an approximate range as a whole.China is now in urgent need of the economic transformation, cultivate new economic growth point, developing new industry, at the same time realize the original industry upgrade. In this process, the capital market should give full play to the function of financial resource allocation, and to the enterprise growth of premium valuation, is to achieve the optimal allocation of resources and financial support, the most important ways to study the growth status and rationality of premium valuation, in this context, it is very meaningful.This paper tries to examine this issue from the perspective of neutral, combined with the research results at home and abroad, the first to observe specific creative premium valuation and degree, the existence of the phenomenon and explore the existence reason, not only from the performance, and more from the potential of products, services, and business model, management ability, strategic layout Angle to analyze enterprise management ability. And then to growth stocks and value stocks to measure return on investment analysis, selection of growth and value stocks respectively, calculate the overall rate of return and the optimal portfolio returns, draw a comparison results. The study found that in different periods, different sectors, industry, company due to macroeconomic and its own cycles, high-growth phase may have a period of time. In addition, the risk of growth stocks is also big, whether for subjective, objective environment changes, or a lot in a period is considered by the market with high growth of the company, the business performance is likely to be poor, that is to say, there are a lot of "pseudo growth stocks". So on the whole, growth stocks higher valuation is not reasonable, but excluding growth worse after the stock, really good growth of the company, even with higher valuations, its returns to investors also is very rich, can count as a successful investment.