Yunnan Tourism Co.,Ltd.Valution Research

With the economic development wave,China has welcomed the 21~stt century.At a historical stage of integrated development,the market economy is strongly promoting the movement of social capital.At this time,the role of capital market has gradually emerged.Traditional listed companies no longer rely on traditional business models for their business improvement.Traditional company business segments are difficult to play a significant role in operation revenue,profit revenue,asset increment and company’s market value growth,which must depend on the capital operation of the listed companies in the capital market to complete a rapid leap and transformation.As tourism is an important pillar industry in Yunnan,Yunnan Tourism is also a representative enterprise under the background of mixed-ownership reform and industry’s acquisition and reorganization.At the same time,OCT(Overseas Chinese Town)has entered into the above-mentioned background,which provides important opinions on the valuation of Yunnan Tourism.In the development process of listed companies,especially in the case of major asset reorganization or equity transfer,the company’s growth ability,profitability,debt paying ability and valuation will all be influenced greatly.This paper selects the relative valuation methods,including price-to-sales ratio(P/S),price-to-book ratio(P/B)and price-to-earning ratio(P/E),for the valuation of tourism listed companies with universality and operability,and valuation methods calculated by absolute value assessment model,WACC,free cash flow for the firm(FCFF)and income method,to evaluate the value of Yunnan Tourism Co.,Ltd.after the strategic reorganization,which is invested in cash by OCT.The paper uses FCFF as the evaluation method of Yunnan Tourism,assumes that the company is a sustainable operation,calculates the company’s WACC,future business forecast and its own cash flow,and finally obtains the company’s market value and reasonable stock price through the income method.It provides reference for the company value of Yunnan Tourism which has been reorganized by OCT.At the same time,it also provides necessary reference for investment value from the investors.This paper analyzes and predicts the internal value of Yunnan Tourism from different perspectives,and finally makes a relatively objective assessment for the reasonable investment range of Yunnan Tourism.The paper proves that,the value of Yunnan Tourism,as a major subsidiary of OCT Group in Yunnan Region,has been reflected and increased after strategic reorganization.What’s more,the paper also provides some references and bases for the judgment of Yunnan Tourism’s investors and the company’s next investment decision-making,and has some reference for central enterprises to enter the local state-owned enterprises for conducting mixed-ownership reform and valuation enterprise reorganization.