A Case Analysis On The Valuation Of Hisense Electric Co. Ltd

As a result of enterprise value assessment，it provides important protection for thevalue of the enterprise’s management and financial analysis.it also provides the basis forinvestment decisions of investors. In China, enterprise valuation has very importantapplications in the financial and strategic analysis as well as mergers and acquisitions inthe IPO.Hisense Electric went public in The Shanghai Stock Exchange in April1997， and itis the leading home appliance listed companies. Under continued low impact of China’smarket， whether Hisense Electric Can survived， and its development prospects will bewhat kind of impact，which is of great concern to all investors and business managers.The main contents of first portion includes a method literature review, researchsignificance and background contrast used research questions. The second part of thearticle describes the focus on the basic concepts and the current theoretical valueassessment. Its contents include the importance of assessing the value in real-life casestudies. Meanwhile comparative analysis method is used in this paper, on the basis ofcomparative analysis, we explore under what circumstances which approach is moresuitable. The third part focuses on the financial and operational condition of HisenseElectric, including industry analysis, financial analysis and comparative analysis withsimilar companies in the industry. Industry analysis includes analysis of industrycharacteristics and the competitive environment. financial analysis includs analysis of debtservice, operations, profitability and growth capabilities. Comparative analysis of theindustry includes financial analysis and comparison with Qingdao Haier.The fourth part of the contents of the article is detailed analysis on the basis of thefront of Hisense Electric using a discounted cash flow and relative valuation method.Conclusions were analyzed and drawn, in the same way, we look for difference betweenthe stock and real, hope to provide some suggestions for investors and management tomake the return on investment of business can be maximized.