Angang New Investment Value Analysis

The mainstream capital market theory in the west is based on "logos assumption" and "complete information assumption". But for the long time, the deviation between corporation value and stock price is general on securities market in China. It seemed that it can not be explained with the capital market theory. Under such background, this report integrates the practice and the experience of western value evaluation, and applies the theory of Economic Value Added (EVA) to the analysis of Angang New Steel Company Ltd. (ANSC) investment value. It also discusses the procedure of EVA value evaluation model.By combining the basic appraisement and value evaluation, this report analyses the macro & micro environment, the ability of growth and financial performance to predict the continual market value of ANSC. Her value comes from the predictable future EVA. With the market competition getting more and more intense, the growth of business will be slow. But her strategy competitive competence and her existing operations scale will support her stock price. The aim of this report is to estimate whether the stock was overrated or underrated by use of EVA model.In summarize, EVA have an advantage of other value evaluation guideline. As a scale of the real economic profit of a corporation, EVA accord with the core of modern financial management, namely maximize of the stockholder value.Since EVA can give an effective standard to value estimation of corporation, and for the long term, stock price would regress its inner value of corporation, EVA can be a important tool of investment value analysis to the investor. To the long term investor, EVA is a effective guideline for choosing stock.