Research On Stock Valuation Method Of The GEM Listed Companies

Since the establishment of gem in China in 2009,the number of listed companies and the size of the market value have been developed rapidly.However,with the first GEM listed companies Xin Tai Electric delisting in 2016,people see the GEM market investment risks.In order to avoid risks,investors tend to use a variety of channels,and the use of a variety of assessment methods to understand the hidden value of the image below the enterprise.In this context,it is of great theoretical and practical significance to establish a scientific stock valuation system for the development of China’s GEM market and help investors to invest in gem.This paper will combine the theory of enterprise valuation and stock model,considering the characteristics of the GEM market investment on the GEM listed companies.Constructing the stock valuation model considering the enterprise’s fundamentals and macroeconomic factors,to help investors avoid the risk,and obtain a higher return on investment.Firstly,this paper sketch the research’s background and its significance,summarizes the research status at domestic and foreign,and combs the theoretical basis and technical methods of the valuation of listed companies and the stock valuation of listed companies.Secondly,the discounted cash flow method of stock valuation(DCF)and economic value added(EVA)and factor analysis(AVV)evaluation method is discussed,on this basis,combined with the characteristics of GEM listed companies in the stock valuation analysis,correlation and regression relationship between financial index and stock selection effect,constructing the stock valuation model considering the enterprise’s fundamentals and macroeconomic factors.Finally,the model is applied to the GEM listed and analyzed the model test results,mainly from the historical financial data LETV 2012 to 2016,through the screening of financial indicators and coordinate the data,use the stock valuation model of LETV stock valuation based on the music net corporate value and in the GEM market capitalization is basically the same.The results show that the stock valuation model is effective.