Study On Valuation Method Of Security Listed Enterprises

As a young industry,security industry comes into being with the security needs of modern society.The current process of global integration continues to advance.Facing the uncertain international situation,the complex and sensitive surrounding environment,the arduous task of steady reform and development,and the growing needs of the people for a better life.All of them put forward the urgent need for security.According to the public data,by the end of 2018,the prosperity index of China's security industry was 165,which was 18 points higher than that of the previous quarter and increased by 8 points compared with the previous quarter.This is in the "stronger prosperity zone".69% of the enterprises surveyed believed that they were in good condition.The prosperity of security industry and the government's massive policy support will promote the rapid development of security listed enterprises.As a leading enterprise in A-share security listed enterprises,HIKVISION is representative in security industry.HIKVISION has been increasing year by year in terms of business income,net profit and net cash flow of business activities.If the base period is2006,the compound growth rate of HIKVISION's business income will be as high as45%.This data totally surpasses more than 95% of A-share enterprises.In addition,HIKVISION's stock price has risen from 3.18 yuan per share to 44.06 yuan per share in the eight years of listing,nearly 13 times higher.It once stood at the top of the market value of Shenzhen Stock exchange,known as the "King of Shenzhen Stock exchange".Such attractive data has aroused great interest in HIKVISION.What is supporting HIKVISION's high growth and high market value?And for market participants,whether the security listed companies has growth potential?What is the future value of HIKVISION?Is there any investment value? It requires the characteristics of security listed companies and different valuation methods to explore the relevant valuation methods applicable to security listed companies in the practice of market investment.This paper chooses HIKVISION as a case to study the valuation of security listed companies.HIKVISION,as the leading enterprise in security listed companies,conforms to the market orientation of scientific and technological upgrading.The paper is divided into five parts to study the valuation of HIKVISION.The first part of the article introduces the background and significance of HIKVISION's valuation research,the research status at domestic and abroad,the research contents and methods,and the innovation of this paper.The second part introduces the theoretical basis of enterprise value evaluation,the method of enterprise value evaluation and the applicability of enterprise value evaluation method in security listed companies.The third part analyses HIKVISION's macro environment,industry situation and financial indicators.Then the factors affecting HIKVISION's visual value evaluation are obtained.The fourth part chooses DCF methodand P/E ratio method to evaluate HIKVISION based on its enterprise characteristics.Finally,the results are compared and analyzed.Finally,conclusions and suggestions.Through the research,it is found that DCF method and P/E ratio method are suitable for the valuation study of security listed companies.In order to improve the accuracy of valuation and the safety margin of investment,two methods should be cross-validated in specific investment practice.It is concluded that during the reasonable valuation period,the enterprises should buy in batches near the lower margin of valuation period and sell in batches near the upper margin of valuation period.