Research On Investment Value Of Listed Companies In Communication Industry

Mobile communication system is about to enter the fifth generation of 5G era.As the most relevant industry of 5G concept,the communication industry has attracted the attention of investors in capital market.At present,the analysis of the investment value of Listed Companies in the telecommunication industry in China still needs to be strengthened,and the existing valuation methods are also lack of pertinence to the subdivision of the industry.Investors do not have sufficient data basis when investing in stocks,and they bear a greater investment risk when investing in stocks.Therefore,the analysis of the valuation methods of Listed Companies in the telecommunication industry and the use of appropriate valuation models to evaluate the intrinsic value of enterprises can not only provide a choice for investors to make reasonable investment decisions,but also enable the telecommunication enterprises to get inspiration from it,reasonably estimate their own value,and make the enterprises develop healthily and continuously.On the basis of introducing the meaning of investment value,this paper puts forward the general methods of investment value analysis: basic analysis method and valuation model analysis method.When choosing the valuation model to evaluate the enterprise value,it combines the life cycle theory of the enterprise,and different valuation methods are applied in different life cycle stages.In the valuation of enterprises in the telecommunication industry,we should consider the characteristics of the telecommunication industry,and analyze the macro,economic and market factors that affect the evaluation of investment value of the telecommunication industry.After a comprehensive analysis of the influencing factors and industry characteristics,it is concluded that the telecommunications industry is in the growth stage,the industry has broad prospects for development,and is expected to continue to develop steadily.It is appropriate to use cash flow discount model to evaluate the listed companies in the telecommunications industry.Therefore,this paper chooses XW Company,a representative leading enterprise in the telecommunication industry,as the analysis object.In terms of financial indicators,XW company’s financial situation is analyzed from three perspectives of profit growth,working capital and cash demand;in terms of non-financial indicators,macro-policies,industry development prospects and market share are selected for analysis.According to the historical data of XW company in the past few years,the future cash flow of XW company is forecasted,and the current intrinsic value of the company is estimated by discounting the future cash flow.Based on the comparison between the valuation results and the actual stock value,it is concluded that in the current market environment,the stock of XW Company is likely to be undervalued,and investors can buy it appropriately.Communication industry belongs to high-tech industry and has a certain strategic position.Although it tends to be mature,some data are still imperfect and access is limited.Therefore,when evaluating,we should use the valuation model appropriately so as to facilitate the acquisition of data and draw more accurate conclusions.As managers in the telecommunications industry,in order to enhance the competitiveness of enterprises,we can increase investment in scientific research,build core industries,form a stable industrial chain,and promote the long-term and stable development of the industry.At the same time,as the investors of enterprises,they should pay attention to the dynamic and financial reports of enterprises in time,understand the main financial information in the financial reports,analyze the financial situation of enterprises,help to make rational judgments in the future,avoid risks in time,and maximize profits.