| Shanghai and Shenzhen Stock Exchange, established in 1990 and 1991, it marks that Chinese capital securities market began to gradually develop. Until 2015, it has been more than 25 years of development. However, compared with mature markets of developed countries, Chinese Capital Market is still relatively young and immature, medium and small investors generally lack awareness of rational investment, the market is very speculative, especially, in the vast majority of individual investors in the value of the company has no clear understanding. Therefore, how to comprehensively analyze the value of listed companies and make the necessary risk warning to them are important issues for the capital market of our country currently.Under the background of the Chinese manufacture 2025 and "the 13 th Five-year" plan,ect.,this article selects the representative enterprise-LS Heavy Equipment CO.,LTD.(stock code:603169.SH"), as the subject of analysis. This company listed in October 2014, its gains reached626.03% within a few months. At that time, this phenomenon caused a sensation, meanwhile,there are a lot of speculation in the market. Then, does this stock have investment value?To solve the above problems, we need to use more scientific methods and tools to analyze the value of the company. In this paper, on the basis of the study of relevant literature and research,analyze the industry background, business characteristics, competitive advantage and financial status of LS Heavy Equipment. Use appropriate analytical methods-free cash flow model(FCFF) and earnings valuation model(PE) to evaluate the value of it. At last, get its reasonable price range of 11.97 yuan-20.60 yuan. Combined with the technical analysis of the secondary market, to analyze the domestic A-share market. Based on the current market environment of LS Heavy Equipmen, we recommend that investors are focused on avoiding risks in the short-term and that choose the opportunity to grasp the low valuation of rebound in revenue. |
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