Research On Valuation Methods Of Home Appliance Listed Companies

With the gradual maturity of China's capital market,the optimization of investor structure,and the widespread spread of value investment concepts,fundamental analysis methods based on value assessment have received increasing attention in China.Valuation is the core technology of financial industry.After years of research,valuation methods and models have formed a relatively perfect theoretical system.But in practical application,the applicability of valuation methods for different industries,different stages and different markets is still the direction of industry and academic research.The household appliance industry is an important manufacturing industry and Midea Group is a leading enterprise in the home appliance industry.This paper analyzes and evaluates the intrinsic value of Midea Group and compares it with the best companies in the same industry.By comparing the three different valuation results of the three companies,the valuation method most suitable for white electric appliance enterprises is determined.By extension,it is a more appropriate valuation method for mature companies with stable operations and abundant cash flow.Based on the summary of valuation theory and valuation methods,this paper uses Midea Group Co.,Ltd.as a research case,analyses the financial situation of Midea,Gree and Haier,and evaluates them by three valuation methods: DCF,DDM and P/E ratio.Then,uses Grey relational analysis to test the adaptability of valuation method,determines the most suitable valuation method.And further analyses of the relationship between dividend and stock price by Cointegration test.The analysis results show DDM is the most suitable valuation method for white goods enterprises in the case of stable dividend distribution,but the valuation results will be undervalued.In the practice,DDM is used to determine the lower limit of the value,and PE model is used to determine the value ceiling,and referring to DCF to determine the stock value is an effective method.