Theoretical And Empirical Research On Capitalization Rate Model Of Growing Stocks

The temperamental marketplace has provided us opportunities to invest and select stocks.However,irrational investments flood in the market because the existing investment models are complex and lack operability for the majority of investors.Now China's economy has entered a crucial stage of innovation and transformation.Value driven investment has become the domination of investment conception of today's A share market,which is strategically important for efficient allocation of resources and for promotion of economy transformation and upgrade.On the basis of the recent progress in assets revaluation theory achieved by national and international researchers,this thesis chooses and analyzes twelve main indexes which impact the ups and downs of share prices.With correlation analysis,five core indexes are then employed for stock selection.The value range,the measure and the weight of each index are determined.Finally,the most valuable shares are picked out through careful calculation and sorting.In order to show its reliability,the proposed model has been applied to analyze the stock data in many years.It is demonstrated that stocks selected in light of the proposed model bring more than about twenty percent profit compared with the market index.