| In recent years, domestic Internet market expands rapidly, which has been the biggest in the world. However, because the domestic stock market is still dominated by "authorization" listing rules, which required listed companies be profitable for three consecutive years, the domestic Internet enterprise has difficulty to cross the threshold, and always chooses to be listed overseas. On April 20, 2015, the approval of Security Law of the revised draft issued that “registration system” for equities is expected to be launched at the end of the year, and domestic market is expected to be the first listed financing platform for the domestic Internet enterprises. LeTV, as a typical domestic Internet enterprise, took the advantage of the capital market,and had a rapid growth since 2010. Studying the investment value analysis of LeTV will provide a reference value for subsequent similar Internet enterprise's investment value analysis.This paper reviewed the absolute valuation method- free cash flow discount method and relative valuation method- price-to-book ratio, price-to-eps ratio, price-to-sales ratio, and analysis of the theory of the valuation of the applicability of the Internet companies, selected from the free cash flow discount method, p/e ratio, and p/s ratio to estimate the value of LeTV.On the analysis of the industry development, the specific business situation and financial statements, this paper makes a prediction about revenue growth, the income statement, balance sheet of LeTV in the future, and uses the above three valuation methods to estimate LeTV. Finally we think its value should be between 174.59 yuan to 178.32 yuan per share, which sill has a certain space compared with the current share price. We recommend that investors can buy LeTV appropriately while paying close attention to its fundamental changes at any time. At the same time, the investors need to guard against the risk of business innovation and intensified industry regulations. |
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