Investment Value Analysis

Since the global financial crisis broke out in 2008, Chinese Security Market has experienced a profound adjustment, and the huge fluctuation of Security Market in 2015 has further depleted market confidence. The main cause of investors’misjudgment is due to their lack of correct understanding and evaluation of companies’investment value. Therefore, under the current situation, it is important for market participants to focus on one question:how to select the right company to invest and scientifically assess its investment value.To analyze and solve the problem mentioned above, scientific investment value analysis theory and methods should be applied to intensive study of companies:external macro-economic environment, developing situation of industry and inherent investment value. The paper targeted at providing market participants a scientific reference scheme of investment analysis which is based on investment value and following the principle of Best of All. And the paper take company A in Chengdu for example, has made layers of analysis. The paper focused on three parts to discuss different issues. Firstly, it focused on economic development and investment environment of Chengdu city to study the external macro-economic environment, has analyzed the function and impact of regional economy on investment options. And then, it focused on key industries of Chengdu to study development of industries, has analyzed the development potential of regional industry and discussed the way to make investment options according to industry analysis. At last part, the paper focused on financial index evaluation and company valuation to study intrinsic value of company, has made an empirical analysis of company A, and get financial index evaluation score of company A among the listed companies in Chengdu, and explained how to analyze company value. Through system research, the paper solved the issue of how to select company and appraised value, and it also helped market participants to understand investment value of company scientifically and multi-dimensionally.