Analysis System For Value Investment Based On The Bussiness Model

Stock investment analysis includes two categories, technical analysis and fundamental value analysis. This article is based on the fundamental value analysis.The investors who analyze the stock based on the fundamental value analysis are often called value analysts. Value investment analysis originated from Benjamin graham, but the master is warren Buffett.. Many followers, from home and abroad started to study Buffett’s value concept and analytical framework, and published many related books.Buffett’s investment value principles mainly include the following points: easy to understand the business, very wide moat in order to keep the competitive advantage, plenty of cash flow, margin of safety principles, concentration, of long-term investment. This article wont discuss the concentration of long-term investment and the safety principle because it is involved the strategy.When involved the business model, we often think of the Dell, apple and so on. Because of these creative business models, we start to know and understand the concept of business model. However, the author thinks any firm has its own business model. The different business models perform different external value because of the inherent operation difference from the various factors.The author believes that business model includes two parts:the qualitative factors and quantity factor. To understand the firm value, the article is to analyze how the qualitative factors influence the quantity factor. Due to the different force from different qualitative factors, the firm gets the different barriers and moat, and finally gains the disparate competitive advantage.the analytical framework based on the value of the business model is suitable for any listed company. In order to further analyze the uniqueness and superiority of this framework, the author takes Yang he and Gujinggongjiu as the cases, so that we can understand the value analysis according to the framework more easily.