Industry Characteristic And Valuation Methods

With the development of china capital market.especially the change of the investor structure in china market(mainly refers the rising of institute investors),the methods that prevailing is dramatically changing these years.The history of our capital market has witnessed the change of the methods of securities analysis and valuation:in various methods.fundamental analysis has become a widely acknowleged method,especially in institute investors.The paper focused on seven common ways of stock valuation:three of them are absolute valuation and four are relative ones.ln the essay,the logics,practical details,advantage and weakness of them are respectively introduced.based on which the characteristic of those industries which may be more suitable to every methods are analyzed.Furthermore,industry applicability of every methods are theoretically dicussed in Chapter3Sequently.in Chapter4.every industry applicability that mentioned in this paper were summarized in a table,based on the research of the data analysis and the study shown in Chapter2.The innovation of this paper is that the industry applicability of every methods are stasically and comprehensively demonstrated.This may benefit our practice of investment.