An Applied Research On The Effectiveness Of Value Investment In China's Securities Market

Value investing is a theoretical system established by the American investment master,which is based on the analysis of enterprise internal value of the securities market in the United States.Through the test of time,value investing was proved to be effective.The establishment of securities market in our country is later than foreign country,and the market operation system and mechanism is not perfect,the listed company's share price run mostly exist larger volatility.The instability of the stock price has hurt the stock market financing mechanism,interfere with the function of financial market service of the real economy,also caused potential threats to the wealth of the stock market investors.Using the potter five competitive model and Dupont analysis from Yunnan Baiyao belongs to the qualitative observation of the financial statements of the pharmaceutical industry found Yunnan Baiyao,a listed company in accordance with the characteristics of the value investment target,absolute valuation method,the relative valuation method and quantitative analysis of the index contrast of trade companies further verified this conclusion.This suggests that the company's share price history is suitable for investors value analysis,the instances to support the value investment in China's securities market exists a certain extent,the effectiveness of the point of view.Through further demonstrate,the applicability of the value investment in China's stock market and its common characteristics of exists to prove that the value investment value in the Chinese market is effective.After research and analysis that individual investors achieve wealth steady growth,achieve sustainable financing of listed companies,securities market healthy development and the entire Chinese financial ecosystem virtuous circle of the popularity of implementation cannot leave the value investment.Only rational investors according to the intrinsic value of a financial asset pricing and make appropriate trading decisions,financial market running mechanism will not be distorted.Investors insist on appropriate investment principle,study more,such as this article analyzed the value investment theory of Yunnan Baiyao and try to avoid inside information is the key to value investing gained popularity.