| In the current composition of world energy consumption, crude oil, naturalgas and coal accounted for about30%each. In2009, the Government further clarifiedthat ‘coal as the main power center, comprehensive development of oil and gas andnew energy strategy’ development pattern in the ‘National Energy DevelopmentStrategy Plan’. the coal was included in the important national energy planningposition. The coal energy, as an important position in the national economy, was paidmuch attention by the investors.As a rising star of listed companies in the coal industry, the financial performanceof Pingdingshan Tian’an Coal Mining Co., Ltd is growing rapidly. So the majority ofinvestors pay much attention to the listed company. This paper takes PingdingshanTian’an Coal Mining Co., Ltd for example to compute its intrinsic value. Andcomparing with the current market price, the author tries to verify the effectiveness ofChina securities market.According to the current national macro-economic background, the authorforecasts the future development of the coal industry on the basis of the analysis aboutthe overall situation of the coal industry and the financial performance ofPingdingshan Tian’an Coal Mining Co., Ltd.Then the author used free cash flowdiscount model and price-earnings ratio model to assess the company’s intrinsic value.The assessment isthat the intrinsic value should be23yuan-25yuan, but the currentprice is20yuan per share, So the value has been undervalued3-5yuan per share. Theauthor believes that the value of the assessment results is consistent with the expectedfuture development of China’s coal industry and Pingdingshan Tian’an Coal MiningCo., Ltd. This indicates that China’s stock market has basically reached the efficiencywhat the value investing needs and the stock price has reflected all the basic historicalinformation that should be included. It also indicates that value investing in ourcountry already has the basic conditions, and value investing environment has beenripe. |
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