Research Of Corporate Valuation Of H Company For The Purpose Of Value Investment

As a very important role of national economy, the household appliances industry is closely related to many other industry, and it also closely links with people’s living condition. Although the whole household appliances industry faces the shock of the domestic market saturation, the decline in sales, industrial structure upgrading, sale pattern reform, the withdrawal of stimulus packages, the application of new efficient standards and the uncertain factor from the real estate market, with the steady development of "China’s New Normal", China’s household appliances industry has entered a brand-new period of structure adjustment and production and consumption upgrading. In this complex economy environment, what is the future of the household appliances industry? How to assess a household appliances enterprise value for the purpose of value investment. These are the key issues to be addressed in this article.The paper first describes the research background and ideas, and introduces an overview of corporate valuation theory, emphatically introduces the residual income model. Then the article use the combination of the Harvard financial analysis framework and the residual income model to assess the value of H household appliances enterprise. The specific as follows:first, the paper uses plenty of data to explain the current status of the household appliances industry and its future reform trends, meanwhile with the operation condition of H household appliances enterprise the paper analyses its competitive strategy. Second, combining with the company’s three statements, the paper analyses its financial position and operating results; looks the inside details of its operation from the perspective of profit ability, operation ability and solvency analysis. Third, after synthesizing the results of the two former parts, the residual income model is adjusted to calculate H household appliances enterprise value.This paper employs the method of case analysis, evaluates H household appliances enterprise value qualitatively and quantitatively. This valuation method has a reference value for the corporate valuation from the same industry, and the selection of some parameters in the research process can also help the business management to improve its business pattern and adjust its financial strategy. At the same time, the article contributes to form a useful value investment strategy.