Analysis On Investment Value Of Great Wall Motor Company Limited

With the world economy continues to develop, the segment of investment has alreadyhave its own history of development, people’s investment philosophy are gradually improving,however, the literature about the analysis of the investment value of China’s private autoindustry are still not that much. As China’s auto market in the current or in the future is stillthe main one in the world’s automotive market, Chinese auto stocks are still the attraction formany investors. Therefore this paper will focus on the analysis of the investment value ofGreat Wall Motor Company Limited which most people are more optimistic with.The main issue to be studied in this paper is to analyze the investment value ofautomotive industry. In the analysis, this paper first introduced the assessment methods andproblems involved in ‘how to choose’ on the field of investment value analysis. This paperdescribes three assessment methods, namely the dividend cash flow model, equity cash flowmodels and models of free cash flow. Through a comprehensive compare of scope of usingand their advantages and disadvantages, this paper chose the free cash flow model as abusiness case evaluation methods to assess the value; followed by an overview of the currentsituation in the overall development of its positive and negative factors of the automotiveindustry. This paper made the study of the Great Wall Motor Company Limited as the center,analyzing the more details of its current operating status and financial conditions. In theprocess of financial analysis, the paper used the vertical and horizontal ‘two-way’comparative analysis, and with its historical data as a basis for the next analysis step: GreatWall Motor’s financial data to predict the operating conditions in the future ten years. Thenusing the idea of free cash flow model not only predicts the future value of the investmentcompanies, also suggests personal investment advice according to results of the valuation,hoping to help investors to make a reasonable investment and sharp judgments, also to reducethe risk of loss arising from the investment.