Analysis Of BYD’s Investment Value

In recent years,environmental pollution and resource shortages have become increasingly prominent.Countries in the world are seeking new alternative energy sources in order to seek their own sustainable development.New energy vehicles are a key industry in the reform of the energy structure.The Chinese government has issued policies and measures since 2010 to vigorously support the development of the new energy vehicle industry,making China’s new energy vehicle production and sales among the top in the world.In particular,in September 2017,the three-point joint management measures on passenger cars and new energy vehicles jointly issued by the three national departments,the promulgation of this measure marked the implementation of the dual-point system.At the same time,this policy is also an important guarantee for the development of new energy vehicles in the future.To a certain extent,it also indicates that the new energy vehicle industry will become the focus of investors’ attention in the market.This article selects BYD as the research object,and it has important practical significance to study its investment value.Its technology,production and sales of new energy vehicles are among the top in the world.The article first analyzes the background of BYD’s company.It examines and analyzes the situation of BYD’s external macro environment from four aspects:political background,economic profile,social recognition and technical stage,in order to fully grasp the influence of BYD’s external market Development potential.Then the article analyzes BYD’s internal financial situation.The company’s profitability,debt servicing,operation and development of the four capabilities of research and analysis and do the same industry comparison.The internal financial condition is an important indicator of the value of an enterprise’s investment.Then,in order to deeply investigate the investment value of B YD in the industry field,the investment value theory analysis method is used to estimate the investment value of four new energy companies in the same industry,and finally draw a conclusion.The results show that BYD has a stable domestic economic environment,enjoys the favorable position of national policy dividends,has a large consumer market and consumer groups in the new energy automobile industry,and has core technologies.At the same time,the residual income model and dividend discount model of absolute valuation method are used to estimate the investment value,and the conclusions are drawn at last Generally speaking,the external environment is its better development in the future.Protection.Its internal financial situation The main concern of investors is whether its debt repayment ability can be improved and its dependence on policies is relatively reduced.The valuation analysis of the investment value of its peers shows that BYD’s large investment in scientific research results in its profits The company’s subsequent development should focus on enhancing the core competitiveness of new energy vehicles.