Category: Money tips Release Date: 2006-11-09
Study of listed companies, we often hear the word valuation, saying actually is how to determine the value of a company with its current stock price at the same time comparing the stock price has deviated from the value obtained judgments, and thus guide our investment.
In general, the valuation of listed companies there are three ways.
The first is the intrinsic value method, you can arrive at discounted future cash flows. If in the future to sustain an enterprise profitable, generate positive cash flow, then the mathematical model can be calculated by the present value of the company can be said that the intrinsic value method is relatively cautious valuation method.
The second method is the relative value method. Contrast to the same type of companies, in general, a comparison between the industry In addition to loss-making enterprises outside of the company's average price-earnings ratio or book value and other indicators, arrive at the present share price is overvalued. If the overall industry overestimated, then derived using this method of valuation that the stock is undervalued probably difficult to get a good return.
The third method is the value of mergers and acquisitions law, adopted in accordance with the current market conditions if the reset a business, need to invest the capital, where the need for current market share in corporate, brand, management, etc. are given a considerable premium.
The above said three kinds of valuation methods, through my many years of observation, in general, in a bear market where the largest number of institutions use the intrinsic value method, so quality-oriented stocks in a bear market where performance will be better. The so-called decline of heavy say is this truth. As the market gradually active, the market will use the relative valuation approach to determine which individual stocks there is compensatory growth opportunities. In the bull market, the entire stock market mergers and acquisitions will continue active capital, playing in financial engineering techniques separate ways, the market has been difficult to find a serious underestimation of the intrinsic value of stocks, when M & A valuation method would be popular.
With the approaching end of the split share structure reform, as well as China's economy and the world economy integration, mergers and acquisitions and restructuring of listed companies will continue to increase, so we have to learn through the acquisition value method to study the existence of a possible acquisition of listed companies.
An interview with today's recording and broadcasting of programs Shenyin industry researcher Lin Zhen, her valuation of the cement industry has a unique view of mergers and acquisitions, while Lin Zhen was the first in the "Industry Report" program where analysis of large Niu Gu Yi-hua Wood Lane and U.S. grams of shares researchers, these two stocks rose more than total 100%, so this issue of the industry report, do not miss.
