Financial Analysis And Stock Evaluation Of China Mobile

After a decade of capital market development in China, it has achieved a remarkable improvement. Reasonable investment concept has replaced the past news and insider information driven concepts. Value oriented investment will become the mainstream of investment model. The international concept on value investment has been accepted by the market. Also, the Chinese securities market has entered the age of value investment. Therefore, the imminent issue that should been investigated and solved is .to offer better methods in value evaluation and to create added-value for corporations.Corporate value is not just the simple summation of assets. But, it depends on the expectation of future income (cash flow). "Buying stock is betting on the corporate future" becomes a general accepted agreement in the financial sector. Therefore, the question of how to determine and predict income and cash flow to calculate the corporate value has become the key issue.This report focuses on general theory, real practice of the market from the point of investors. Using China Mobile as an observation to analyze the corporate value in qualitative and quantitative perspectives such as operating environment, financial position and value driven factorsBased on the analysis of business cycle, prospect and the core competence of the corporation, it can generate a more accurate picture in the corporate future. Then evaluate the theoretical value with discounted cash flow model (DCF). Finally, this figure will be compared with the value calculated using comparison method in order to accurately find out the true value.In conclusion, this report selects China Mobile with the hope to search the unique characteristics of valuation model in the Chinese market.