Analysis Of The Investment Value Of Zhonghuan Co. Ltd

With the transformation of energy consumption in China,the development and utilization of new energy sources has been attached great importance by the state.Solar photovoltaic power generation,as the main force of new energy utilization in China,has been strongly supported and developed.At the same time,listed companies of the photovoltaic industry are emerging in large numbers,but as new members of the market,they will face more opportunities and challenges in production and management.It is particularly important to make a correct assessment of enterprise value.However,there are relatively few studies on the value analysis of listed companies in the photovoltaic industry.It is of practical significance to take ZhongHuan Co.Ltd.as an example to explore its intrinsic value,guide investors to have a full understanding of emerging markets,reduce information asymmetry,and enhance the intrinsic value of enterprises.At the same time,it provides investors with objective analysis methods in the process of investment,so as to make value investment.Based on the valuation theory,it adopted the method of qualitative analysis and quantitative analysis,selected the valuation model to conduct a comprehensive analysis on the investment value of company,and obtained the valuation results,analyzed the results and put forward countermeasures and Suggestions.Qualitatively,the current situation and development prospect of macro environment and photovoltaic industry were analyzed in detail.The general situation and competitiveness of company were analyzed.In terms of quantitative,it built photovoltaic industry evaluation index system of investment value of listed companies,with 18 photovoltaic industry listed companies in 2018,a total of 224 indicators data as sample,using factor analysis method,it was concluded that the comprehensive factor score ranking,results showed that the company's comprehensive factor score ranked second in the industry,its investment value is higher than the industry average;According to the financial report data of company from 2014 to 2018,it made a comparative analysis of its debt repayment,operation,profitability and development capacity from vertical and horizontal aspects respectively.The results showed that it has a stable financial structure and strong profitability and development ability in the industry.The intrinsic value of company was estimated by the free cash flow discount model,and the Holt index smoothing method was used to predict the future free cash flow.The weighted average cost of capital was used as the discount rate to obtain the estimated results,indicating that the intrinsic value of ZhongHuan Co.Ltd.was underestimated.The relative valuation model was used to estimate the intrinsic value,and the industry average was used as the benchmark.The estimation results showed that its intrinsic value of was undervalued.Based on the analysis of the valuation results,it was found that the valuation based on the discounted free cash flow model and the valuation based on the P/E ratio and P/B ratio are of more reference significance.It analyzed the causes of the undervaluation and put forward countermeasures and suggestions.