Investment Value Analysis Of The Stock Of China State Construction

As the leader of the construction industry in China,and the important blue chip in the A stock market,China State construction's stocks have been in a position for 5 years Since it was listed in 2009,but the stock prices have risen sharply from the end of 2014 to the beginning of 2015,and the steady of the infrastructure blue chip has been subverted.The stock price fluctuated between 8-12 yuan in the last two years.There were many discussions about the market performance and future investment value of China State construction's stock price.The analysis of investment value is closely related to the valuation of stock value.The existing literature on the valuation of listed companies usually uses cash flow discount or EVA valuation method.There are few cases in which the EVA valuation method and the relative value method are used to evaluate the value of the same enterprise.This article tries to make an attempt that the EVA valuation method and relative valuation method,which are widely used at present,are applied to the analysis of the value of China State construction's stock investment.The first,it introduces the theory and method of the analysis of enterprise value and investment value,expounds the basic principles of the EVA valuation method and the relative valuation method,and Analyses the factors that affect the investment value of the enterprise.Then,it is used Financial index analysis,SWOT analysis and technical analysis to evaluate the enterprise and the past,present and future of the stock prices.Next,it collects the economic data of the company from 2010 to 2016,and evaluates the company stock value from two angles of company intrinsic value and external market performance by using EVA valuation method and relative valuation method(P/E model and P/B model).Finally,it judges the future investment value of the stock according to the results of the valuation and provides investment advice for investors.The basic conclusions of the study are as follows: from the technical analysis of the fundamentals and stocks of the company,China State construction's stocks are more valuable than other blue chips in the same industry.Based on the results of the EVA valuation method and the relative value method,the current market price of the company is far below its intrinsic value and relative value.It shows that the stock value is undervalued,and the stock price should have a 20-50% rise.