The Valuation Study Of SUNING Commerce Group CO.LTD.

The surge incoming of E-commerce era gives the traditional retailing a heavy blow. In recent years, the domestic Internet market expands rapidly and has been ranked first in the world. Therefore, the Internet has become an important means to promote business innovation and improve operational efficiency. The combination of traditional retail industry and the Internet has become an inevitable trend. The rapid development of online retail is influencing and changing the traditional distribution model. With the development of technology and the retail revolution, all retail channels will be the future trend of development. Enterprises need a stronger ability to integrate resources facing the whole channel model of distribution channels. Whether the horizontal integration of online and offline business, or vertical integration of supply and control of consumers, all of them proposed a new and challenging requirements to companies.This paper compares the commonly used valuation theory like absolute valuation method-free cash flow model and relative valuation method-PE,PB,PS. Specific to Suning, we finally choose free cash flow model, PS and market value/active user to estimate valuation.This paper analyzes the business development, the industry conditions, the core competencies and financial situation of Suning. And predict the free cash flow based on them. We use free cash flow model, PE and PS method to estimate the valuation of Suning. The estimated value per share, although slightly different, but are all higher than the current share price. Therefore we believe that Suning still has investment value.