| In the past 18 years of China stock market, the times that private equity manipulated stock market, analyzed the trend and technique by stock comment, and small or medium stock investor were frenzy about turbulence of stock market, all of which have gone with wind. After entering into WTO, organization investors led by fund, social insurance security, insurance and securities, which are insisted in industry analysis, research and forecast of listed companies'performance, which has been prominent notion for value investment. High ratio of yearly double revenue yield of Warren E. Buffett and Peter Lynch has proved the notion is right.Domestic research level for listed companies is at entry level, which lacked deepen analysis of various industries, while recognition to future tendency of industries is not so accurate. Method of evaluation is simple and relative valuation method is generally used. Most industry reports of analysis have less effect on guide to evaluation. Steel industry, as one of the most competitive industries in the world, is much symbolized. When analyzing listed companies in steel industry in A stocks market, the essay will dig out their inside value by modern stock analyzed mode.Analyzed from features of steel industry, stock performance of steel companies in second-class market, absolute evaluation mode (DCF, DDM) and relative evaluation method, the essay has concluded methods for valuation which are appropriate for current domestic listed company in A stock market, namely P/E,PB,DCF and demonstrate inside value for some listed companies from 1990-2007.Compared listed company through various elements (including compare value of domestic listed steel companies with those of oversea ones), the result comes out that domestic listed steel companies'A / H stocks have more advantages in price evaluation.In the end, the essay looked forward to the future of steel industry, the investment opportunities in second-class market, and their corresponding risk. |
