Investment Value Analysis Of Suning Appliance

Currently the date of recovery of global economy and the purchasing power of the world is uncertain by the influence of the US sub-prime crisis. China is bound to transform the way of growth in GDP from export growth into domestic demand-led.No doubt for the listed companies whose core business is the terminal retail business , such as Suning Appliance Group (002024), are faced with unprecedented opportunities for development. We must carefully analyze of the status of industry and advantages of Suning Suning so as to assess if Suning Appliance Group can seize this opportunity to become China's Wal-Mart. And further we analyze of the investment value for the community and investors, which is the problem of article to be addressed.For the analysis of the competitive advantage of Suning Appliance Group, we use two methods. One is Michael Porter's Five Forces ? Competitive analysis and another is SWOT analysis. Through different methods of analysis, the article reveals the status of industry and opportunities and risks of Suning Appliance Group. As the industry leader, the face of major competitors or because of internal reasons, or due to external reasons, Suning Appliance Group missed the macro-development opportunities and even had to withdrawn from domestic market. Hence it is not difficult to conclude that the development strategy of Suning Appliance Group is to develop steadily, expand markets and cement advantages. Nextly this paper analyses the enterprise's core competitiveness and unique competitive advantage according to the existing structure so as to help investors understand the the current situation and the strength of Suning Appliance Group.At the beginning of Suning Appliance Group to be listed, it is concerned by the capital markets and extraordinary business growth rate has also been the focus of investor attention. Through the P/E analysis and price-to-equity analysis at the part of value of business investment, the article reviews process of business growth and compared with other enterprises of the capital market given the reasons for the high valuation of Suning Appliance Group. And through the analysis of foreign cash flow calculation model, we find out some of contents which is incompatible with the actual situation in China. Then we put forward for this new interest on cash flow-to-equity calculation. By using linear regression and exponential regression, we analyze EPS,ROE and cash flow interest in the regression analysis and estimate company's future growth rate by the regression equation. Finally by the two-stage model we make an estimate for actual value of Suning Appliance Group by discounting the future value, and compared with the actual market value conclusion.If Suning Appliance Group is an excellent listed company remain to be test of time. Any business can only be used as a reference for the valuation of data to help investors analyze the market. That given the high valuation premium should not be accepted itself is still worth exploring, by the ability the paper must have a lot less restrictions and please readers criticize the correction.