Applicability Research On Valuation Methods Of Listed Companies In New Materials Industry

New materials refer to newly emerging materials with excellent properties or special functions,or materials with significantly improved performance or new functions after the improvement of traditional materials.The new materials industry mainly includes new materials,related products and production technologies.New materials are the cornerstone and precursor of a new round of scientific and technological revolution and industrial transformation,and are the indispensable place for the development of science and technology and economy in various countries around the world.Accelerating the development of new materials industry is an important goal of our country at present,which concerns national development and national defense security.At present,China's economy is in an important period of upgrading and transformation.The country has successively issued relevant policies such as the "Thirteenth Five-Year" National Strategic Emerging Industry Development Plan,and the New Material Industry Development Guide.At the same time,the demand for new materials in the international market and the domestic market is also increasing.The development of China's new material industry has ushered in new historical opportunities.However,China's financial market is still imperfect.On the one hand,it prevents the market from pricing related companies and cannot reflect its true value;on the other hand,the role of capital allocation cannot be fully exerted,and it is difficult to effectively solve the financing needs of related companies.Therefore,in this paper,starting from the valuation,three new material industry listed companies of CITIC Special Steel,Longji Co.,Ltd.and New Zebang were selected as research samples.Seven valuation methods were used to calculate the five-year valuation of the sample from 2014 to 2018.A comparative analysis study was conducted,and an attempt was made to find a suitable valuation method for the new materials industry,providing a reference for researchers and investors.The research results show that:(1)In the relative valuation method,the multiple valuation method is more applicable to listed companies in the new materials industry.The author believes that EBITDA does not include investment income,non-operating income and expenditures,and excludes the effects of non-operating factors such as financial leverage,depreciation policies,and long-term investment levels,so it can better reflect the company's true operating capabilities.At the same time,it can also enhance the comparability between companies in the industry,and has good applicability for listed companies in the new materials industry,and it has certain practical value for guiding investment.(2)In the absolute valuation method,the two valuation methods listed in this article are not ideal for listed companies in the new materials industry.As a strategic emerging industry,especially a listed company that belongs to the classification of key strategic materials,the establishment period is relatively short,it is generally in the growth stage,and the stability of the company's operating status is low.Therefore,when using valuation methods such as the free cash flow method or the EVA method It is prone to negative valuation results,which is obviously contrary to the actual market situation;at the same time,the instability of its operations will also affect the researchers' estimation of its growth rate and future operating conditions,and ultimately affect the accuracy of the valuation results.(3)This paper establishes a multivariate regression model by analyzing the influencing factors of company value,taking the stock price of listed companies in the new materials industry in China's A-share market as the explanatory variable,and using the main component of the enterprise value influencing factor as the explanatory variable.,The three reserved samples were valued.Based on the analysis and comparison of the valuation results,the author believes that the multi-factor valuation model is also applicable to the new materials industry.The multi-factor valuation model has the characteristics of a large amount of information and a higher degree of interpretation of the company's value.The final empirical results also prove that the multi-factor valuation model has a better valuation result and has a lower degree of deviation.Good returns have also been achieved in simulated investments.