Research On Value Investment Strategy Of Stocks

The financial Enterprise Value (EV) is the qualitative result of interaction between business model, corporate governance, etc. The financial EV is the outcome, not a driving factor of value.The true value of EV is the capacity based on business model. It is result of operation activities. EV is corresponding share in a company by shareholders. One side, EV is asset value at certain point of time; on the other side, EV is the long-term benefit to shareholders. EV keeps changing to certain direction in a relative long period of time. Business model is the related system composed by clients, internal value chain, resource and potential.Corporate governance and management capacity is the catalyzer of EV, not driving factor. Generally, substantial shareholders control the company and do not have agent cost. While middle and small shareholders are boring by agent cost and ethies risk.The price and true EV of a stock exist in antimony. The balance of price and EV is always changing. Investment value strategy is effective on those companies dominated by true EV.Traditional measurement of investment risk comes from statistics method of stock price. The method describes changing of stock price on risk of EV. Those factors that changed EV are the real risk of investment not behaviors of stocks.