A Study Of Xiaomi Group's Value Evaluation

Since its establishment,Xiaomi Group has quickly captured a group of fans and occupied a place in the smart phone market,breaking the monopoly position of Apple and Samsung in China,and opening up the market segment of the domestic high-cost machine.After that,drawing on Apple's business model,it created a “triathlon” model that uses hardware to attract customers and download software.It successfully achieved the strategic transformation from communication equipment manufacturers to Internet service provider,successfully created the Xiaomi ecosystem.After the successful listing in 2018,the stock price continued to be sluggish.Therefore,based on the summary of relevant literature review and basic theory,this paper evaluates the enterprise value of Xiaomi Group through the discounted cash flow method.The evaluation results show that the stock price of Xiaomi Group is overestimated to a certain extent,mainly because the current profitability of the company is relatively poor compared with the same industry,and the scale of business growth has entered a bottleneck.At the same time,the paper uses the market method to conduct valuation,and compares,analyzes and evaluates the valuation results,and proposes suggestions for the future development of Xiaomi Group.