ST Company’s Stock Investment Analysis And Valuation

Since1998, ST stock has been created as a unique kind of stock in Chinese stock market it has been the focus in the market all the time. At the beginning of this year, Gem retreat city system has been launched and that makes it become a hot topic in the market once again. ST stock investment has its own characteristics, such as high volatility, the risk is bigger, etc. These characteristics make it become a paradise for speculators.This paper is divided into six chapters. The first chapter is introduction; it will describe the research background, significance, and innovation points. The second chapter analyzes the ST stock pricing theory foundation. The third chapter mainly analyzes the present situation of the ST companies and the ST companies’cause. In the fourth chapter, this paper first analyzes whether there is excess earnings in ST company stock, then it will studies delisted risk which is the special risk in ST stock, Through the empirical test to find the financial indicators which influent the delisted for ST company, it is the first step to find out the highest delisted risk in the rational investment. In the fifth chapter, different value evaluation method will be used to evaluate company’s stock price. The sixth chapter is the summary part.The result of this paper mainly includes:ST company’s origin is complicated, there is excess earnings in ST company, some of company’s indicators will change obviously before it’s delisted, Cannot use a single method on ST stock’s valuation.