| With development of capital market in our country, the financing source has become increasingly diverse. The number of public company has grown strongly with the growth for security market. As to how to select and judge whether a public company deserve for investment, a reasonable investor need to have a thorough consideration. This essay aim to provide a example for valuation method application.The essay intends to analyze from automotive components industry, to Huayu Automotive System Corporation, to evaluate the true value of this company, and investment opportunity.As to the industry analysis, several comterparts are selected and compared. By reviewing the past performance and five force model, the profitability is assessed.Apart from non-financial factors, the financial analysis is made to further evaluate the value of company. Finance analysis is based on the public reports, including accounting policy, report of financial position, report of financial perform, report of cashflows, to assess the company's management efficiency and profitability.After analysis on both industry and corporation, the essay apply different valuation model(FCFF model, PE/PB model) to assess the company's value and its share price.In conclusion, the essay analyzes both industry and corporation, uses different valuation model to judge the company's true value, and provide a future prediction on share price trend. Based on the analysis above, the share price of Huayu Automotive is valued around 30-32 RMB, and there is huge potential for the price to increase. |
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