Research On Investment Value Evaluation Of Listed Companies In Appliance Industry

Since the 14th five year plan,China’s macro-economy has developed rapidly and relevant policies for the home appliance industry have been issued continuously,which provides strong support for the rapid development of the home appliance industry.By the end of 2021,there were eighty-seven listed companies in China’s home appliances.With the expansion of the scale of the home appliance market and the upgrading of consumer demand,the home appliance industry burst out strong development vitality with the support of a number of national policies such as smart home appliance policy and home appliances to the countryside policy,and continuously carried out industrial optimization and upgrading based on consumer demand.In the process of industrial optimization and upgrading,the intelligent development trend of the household appliance industry makes its performance increasingly prominent in the stock investment market,and investors’ attention to the household appliance industry continues to increase.Therefore,when selecting target enterprises,investors include many listed household appliance companies into the scope of investment.Under this development trend,the investment value of listed household electrical appliance companies has become the basis for investors to invest.Therefore,in order to make investors make more reasonable investment decisions,we need to further study the evaluation value of listed household electrical appliance companies by selecting reasonable value evaluation methods.Based on this,on the basis of sorting out and summarizing the relevant literature on the investment value evaluation of listed companies at home and abroad,under the guidance of capital pricing theory,MM theory and value investment theory,this paper selects Midea Group,a listed company in China’s household appliance industry,as the research object to study its investment value.Firstly,this paper analyzes the basic principles and application characteristics of different value evaluation methods,so as to lay the foundation for selecting reasonable value evaluation methods later;Secondly,this paper analyzes and evaluates the background of the home appliance industry and the general situation of Midea Group,and makes a financial analysis based on the annual report of Midea Group in recent five years.It is found that the enterprise has good solvency,relatively stable operation ability and profitability,and great development potential.Thirdly,through the analysis of the applicability of the valuation method of Listed Companies in the household appliance industry,this paper selects the free cash flow discount model to evaluate the investment value of Midea Group.The study finds that:due to the influence of macroeconomic environment,industry development and other factors,the valuation results are different from the actual stock price,and the stock price of Midea Group is undervalued;After analyzing Midea Group,it is found that Midea Group has a certain investment value,and its investment value has a certain room for rise.Finally,based on the above research,this paper puts forward relevant suggestions for investors,home appliance listed companies and government departments,and looks forward to the follow-up research,in order to provide some reference for investors to evaluate the investment value.