An Analysis Of The Investment Value Of Shuanghui

With accelerated pace of deepening reform of capital market,value investment will gradually become the mainstream way of capital market investment.Chinese consumer market has great potential,so its future growth potential cannot be ignored.In the context of current economic growth is shifting and consumption structure is upgrading,with value investment as guidance,further deepen and enrich the valuation theory in the large consumption sector become the proper meaning of the times.In this paper,the author starts from meat products industry,chooses Shuanghui Development as the focal point for empirical research,dig the intrinsic value of White Horse Unit,which not only provides a scientific basis for investors to invest,and can provide examples for managers to optimize operations.Through examination of macro environment,industry conditions,operating conditions,company history and future strategic direction of leading enterprise Shuanghui Development,this paper sets financial model,forecasts financial data of the listed company over the next three years,employs absolute valuation method,evaluates investment value of Shuanghui Development,gives weight to results of the valuation through model applicability analysis,and obtained integrated valuation range of Shuanghui Development,and price-sensitive factors are analyzed.From long-term point of view,under EVA and FCFF methods,Shuanghui Development still has 30%-50% increasing space in the future.Under absolute valuation method,the intrinsic value of Shuanghui Development is more sensitive to capital cost than growth rate.It requires financial modeler to accurately grasp macroeconomic situation,industry risk,unexpected situations and financial data of great impact as well as other variables estimated in value evaluation process.