Research On Market Value Management Strategy Of Gree Electric Company Based On Value Deviation Degree

With the successful completion of China's share structure reform,listed companies have a quantitative value in the capital market,and market value management should be shipped out in China.However,China's capital market is not mature,and the stock market fluctuates.Even the market value of Gree Electric company,the leading enterprise in the air conditioning industry,fluctuates sharply with the dramatic changes in the capital market,which brings great risks to the company.Although Gree Electric Company has carried out market value management for many times in different periods,the effect of market value management strategy implementation is very unstable.Therefore,the research on the market value management strategy of Gree Electric Company is of great significance for scientific implementation of market value management to reduce the risk of market value fluctuation of the company.Based on the review of market value management and other related theories,this paper uses the value evaluation theory,value deviation degree theory and market value management theory to combine quantitative calculation and qualitative analysis.Through the evaluation of the value of Gree Electric Company,the calculation method of value deviation degree is put forward,and then the value deviation degree is calculated,and the value state of Gree Electric company is obtained According to the actual situation of the company,this paper puts forward the appropriate market value management strategy of Gree Electric company.The main research work and conclusions of this paper are as follows:(1)based on the understanding of value theory and the analysis of common valuation methods,this paper points out that the discounted free cash flow method of the company is a suitable valuation method for Gree Electric company,introduces the whole process of valuation in detail,and obtains the value of Gree Electric Company.(2)By clarifying the meaning of the theory of value deviation degree,this paper introduces the mathematical model of value deviation degree,expounds the calculation method of value deviation degree,and obtains the value deviation degree of Gree Electric company.According to the value deviation degree,we can know that Gree Electric company is under valued in the middle of 2018.(3)On the basis of clarifying the meaning of market value management and the relationship with value management,according to the undervalued state of Gree Electric company and the actual situation of the company,this paper puts forward the market value management strategy of increasing the company's shares by senior managers under the undervalued state of Gree Electric company,analyzes the short-term and long-term effects of the increase of the company's shares by senior managers,and formulates the process of the market value management strategy of Gree Electric company for the implementation of the market Value management provides reference.