Car Manufacturing And Faw Car Investment Value Analysis

Valuation is the premise and basis of virtually every investment activity. Valuation analysis means evaluating the inner values of a company. From a cerptain perspective not only is it a kind of science but also an art. It requires one to use such knowledge as economics accounting and investment comprehensively. It also requires one to have a good understanding of the management and actual operation of a company. And the most important is to have a deep understanding of stock markets, a good sense of marketing and a keen perception. Valuation analysis should be a process of applying theories to practice.The thesis firstly elaborates the history of the development of the stock valuation. After the theoretical exploration of the stock markets and stock investment, many western economists and investors have put forward various theories, thus forming four basic analysis schools, namely, fundamental analysis, technical analysis, mental analysis and academic modern finance theories. Now there are three kinds of methods to analyze the value of stock investment. This thesis focuses on three methodologies of stock valuation and investment analysis: fundamental analysis, technical analysis and portfolio management. In light of the practice of the international stock markets and the characteristics of the Chinese stock market, the fundamental analysis, especially EICM (Economy -Industry-Company-Market Analysis) will be the first choice to analyze the stock investment.This study targets at the Chinese automobile manufacturing industry and a company called FAW in particular. The valuation analysis of his industry and this company combines the company-specific fundamental analysis and macro-economic analysis. The thesis begins with the history of automobile manufacturing industry and puts its emphasis in the analysis of this industry's marketing and development .It concludes that the automobile manufacturing industry has its own particularities and the automobile manufacturing industry of our country is one of the new industries that are at the stage of fast development. In the new era, however, the automobile manufacturing industry still needs structural adjustment of industry and developing its key technology and its own brands and exploiting energy-saving and carbon emission-reducing cars and cars of new energies. After analyzing FAW's competitive advantages and financing, the thesis holds that FAW has main sustainable competition and strong financing and that the company is at a stage of high profits and fast developing and that it has the value of long-term investment.The thesis aims at not only providing the readers with an example to effectively analyze the industries and company's investment values but also provides stockholders and potential investors with a reference platform to analyze the investment values .The work of the thesis will also provide reference for benefit counterparts and car-making industry's managing strategies.