With the development of china’s property sector in the last two decades, the real estate industry has become one of the key industries to follow. Real estate sectors in Shanghai and Shenzhen stock markets have also become hot, with price fluctuation.The development of real estate listings not only drives the rapid development of the property sector, but also brings a great investment opportunity for investors, while at the same time inevitably presents investment risk. Generally speaking, what investors care about is whether it’s worthwhile to invest in the property sector.This paper is based on the financial reports of the real estate listing Corporations from 2011 to 2013, selecting the appropriate financial indicators to construct the evaluation system for investment value. After analyzing the current mainstream principal component analysis method and entropy method, their pros and cons, we combined the two methods of analysis, analyzing the main indicators with the method of principal component, then using entropy method to conduct comprehensive analysis because of its objective weighting feature, adding earning rations, we came up with the investment value ranking as a reference for rational investment.The main conclusions of this paper are: the growth of average profitability of the real estate listing Corporation has slowed in recent years, the average profit margin declined, asset liability ratio increased; the stock market real estate sector average price earnings ratio is high, the investment risk has emerged; the current real estate sector overall market performance are quite different.Those with low price earnings ratio,and better development prospects, have higher investment value, yet some companies are obviously overvalued, of which investors should be cautious. |