Research On The Investment Value Of Midea Group Company’s Stock

With the continuous growth of China’s economy,the capital market is also mature in the continuous reform.The continuous growth of residents’ income and the change of investment concepts have made many people use stocks as the target of financial investment.After a series of reforms in our country’s stock market,the relevant laws and regulations have become more complete,and the valuation of listed companies has also become more reasonable.As a leading company in the home appliance industry,Midea Group has,in recent years,both in terms of asset scale,market share and business Revenue is in a leading position in the industry.In addition,Midea Group’s product innovation,globalization potential,and new business development capabilities are all excellent.Therefore,this paper adopts appropriate evaluation methods to study the investment value of Midea Group,so that the majority of investors can realize the investment value of Midea Group,and at the same time contribute my strength to guide investors to conduct rational value investment and promote the healthy development of China’s capital market.In the form of a case,this article makes a more comprehensive analysis of the investment value of Midea Group.First,this article combs the theories related to the company’s stock investment value and common valuation theories,and then analyzes the development status of the home appliance industry in which Midea Group is located.Then through the PEST model,a more comprehensive analysis of the macro environment of the home appliance industry.Then use Porter’s five forces model to analyze the current competition in the home appliance industry and the trend of competition.It is concluded that the competition in my country’s home appliance industry will present a small number of home appliance giants dominating the market,some characteristic brands will survive,and some small and medium home appliance manufacturers will face mergers and acquisitions,and analyzed the development trend of the home appliance industry.Through industry analysis,it is concluded that the home appliance industry is an industry with investment value and broad development prospects.Next,this article sorts out the overview and development history of Midea Group through qualitative analysis,and analysis of Midea Group’s core competitiveness,which comes from the efficient operation of its business unit system and its active reform and innovation-driven strategy.Then it quantitatively analyzed the financial status of Midea Group and compared it with Gree Electric and Haier Smart Home in the same industry.Through the qualitative and quantitative analysis of the Midea Group company level,it is concluded that Midea Group is a very good company.Finally,this paper evaluates the intrinsic value of Midea Group’s stocks through the revised price-earnings ratio valuation method,revised price-to-book ratio valuation and the company’s free cash flow discount method,Combined with the market value of the stock on the evaluation day,it comprehensively gives investment conclusions and suggestions.Based on the above research and analysis,the conclusion is that: the basic level of the Midea Group is very excellent,the industry development prospects are clear,and the financial situation is excellent,and it is basically in the leading position in the same industry.Based on the comprehensive valuation results,this paper predicts that the group of Meimei has a broad development prospect in the future,and it has investment value.This article suggestion: Make long-term value investment in Midea Group and enjoy the benefits of long-term development.