| In 2018,with the deepening of the IPO reform in the capital market,the strong support of the new Economy,unicorn Enterprise listing and financing,as well as the360 backdoor of the Internet security giant in the end of 2017,the return to A-share is a big upsurge.The main reason for the China-concept Stocks’ return in the Internet is the huge valuation difference between China and America.Therefore,this paper uses the case study method and selects the “360 Back-door Listing” case as the subject to discusses the return of China-concept Stocks in the Internet from the perspective of valuation.The first part is the introduction.The second part probes into the motives of overseas return and concludes the cross-market arbitrage is the essence.And then introduces the three main ways of arbitrage including IPO,borrowing shell and secondary offerings.The third part refers to case introduction,including the background of the whole case and the basic situation of 360 company.The fourth part enters into concrete case analysis.First analyzes the practical application of valuation arbitrage method in this return and concludes that the current valuation arbitrage earnings were derived from the increase of the value of the secondary market after the return and potential earnings comes from the increase of company’s ability to refinance.Considering 360 company’s huge valuation differences,the enterprise value of 360 was tested with the Price-Earnings ratio method,the "Income method + Real option method",and meanwhile its Present value of company growth.Finally,from the positive analysis,the R&D cost has not been capitalized and after considering the improvement of the value of the company by non-financial factors,it was concluded that 360 company’s return was to pursue valuation repair and even premium for the company so as to make choices in different capital markets.From the reverse analysis,it can also cause a series of problems,such as not conducive to effective protection of investors,the increase of Foreign Exchange control pressure and the multiple risks,especially market risk,faced by the company itself.So there was a lot of uncertainty about the success of valuation arbitrage.The fifth part are conclusions and some corresponding suggestions from the aspects of supervision,capital market and the China-concept Stocks. |
