Value Evaluation Research Of China Unicom

After the restructuring of China telecommunication industry in 2008, three all-service operators come into being. China United Network Communications Limited (China Unicom for short) is restructured and merged on the foundation of the original China Netcom and former China Unicom. It is one of the three all-service operators in China, and also the only company in New York, Hong Kong and Shanghai-listed telecom companies. In January 2009, China Unicom won the 3G WCDMA license, Does it has investment value or not after restructuring and winning the 3G license? Does it has developing prospects? How to evaluate its value? These questions are to be answered in this paper.The paper elaborates the Harvard Financial Analysis Framework, combining strategic analysis with financial statement analysis, and introduces the four aspects in the framework, including strategic analysis, accounting analysis, financial analysis, the prospect of analysis, and then introduce the basic method of evaluation about a company currently. Then, this paper makes the value evaluation research of China Unicom by Harvard financial analysis framework and value evaluation model linking theory and practice. Specific include:First, it analyses the industry development and future trends from macro environment,industry environment and industry development situation firstly, and it also analyses its development target,strategies and competitive position combining with the overall situation of China Unicom. Second, it analyses the core competitiveness of China Unicom, uses financial tools to analysis this corporation and makes the prospect analysis about China Unicom according to the structure. Third, it uses the capital asset pricing model and free discounter-cash-flow model,PE,PB and so on to evaluate its values.This paper evaluates the value of China Unicom through the qualitative and quantitative and case analysis methods, the value evaluation of telecommunications industry has important reference meanings, and it can also improve the management strategy of China Unicom and help the investors to form the correct investment decisions.