Investment Value Research Based On P/E Ratio Model:Da Hua Share As Example

Security demand has been one of the basic needs of humankind since ancient times.With more and more serious situation of international anti-terrorism,and stronger and stronger security awareness in domestic security,security products and services have a big self-evident importance.With continuous updates of people's safe requirement in society,security industry market had become one of the fastest growing markets,security industry stocks are also being favored in the securities market.This paper chooses the listed company Zhejiang Dahua Technology Co.,Ltd.(Dahua shares,code: 002236.SZ)as research object,studies and analyzes its investment value by studying the knowledge which learned during the MBA period.This paper uses the "top-down" investment analysis method.First,analysis domestic and international economic background and security industry development status,and evaluate potentials and trend in future of security industry.Second,analyze Dahua company's fundamental state and operating conditions,to assess Dahua shares competitiveness in the market by "Nine force model".Third,based on Da Hua Shares' financial data,assess its investment value by P/E valuation model.Finally,compare and verify the evaluation results,to determine the necessary of investment value of Da Hua shares.The conclusion of this paper: first,on December 30 th in 2016(the stock market in 2016 last trading day),the theoretical value of Dahua shares is 19.05 yuan,while in December 30 th,2016 the stock's closing price of 13.68 yuan,recommended investors to buy.Second,as the leader of this industry,Dahua shares' excellent growth capacity and good business performance will continue to be expressed in the stock price,the investors can choose long-term holding.The significance of this study: on the one hand,through the analysis of the investment value of UOB shares,investment value evaluation method suitable for the characteristics of the security industry;on the other hand,to help investors understand the Dahua shares industry competitiveness and operating conditions,to provide scientific and reasonable investment advice to investors.