Study On Investment Value Of TAL Education Group

Education is the foundation of people’s livelihood and the focus of attention of the Chinese government and people.As a product of the concept of "Internet +",online education gives full play to the advantages of the Internet,breaks through the limitations of time and space to the greatest extent,makes up for many deficiencies of traditional offline education,and promotes educational equity to a certain extent.In the past few years,most research on the value of investment has focused on the traditional industries represented by the manufacturing industry.However,as an emerging online education company,from the perspective of investors,especially the quantitative analysis of the intrinsic value of TAL,an excellent online education company that develops rapidly in recent years,still needs to be further studied.Based on this,this paper chooses the future as the research object and analyzes its investment value.Provide risk analysis and investment advice to stakeholders through comprehensive analysis results.According to the relevant literature theory,this paper first carries on the qualitative analysis to the TAL fundamentals.The analysis of macro environment includes three aspects:policies and regulations,people’s living standard and science and technology development.At the industry level,the analysis includes four aspects: industry development history,growth rate,current market segments and main competition pattern.The analysis at the company level includes three aspects: TAL organizational framework,business scope and core competitiveness.Secondly,qualitative analysis of the future of the good,the main analysis methods are: horizontal contrast,longitudinal contrast and factor analysis to get a comprehensive score;The main content of the analysis includes four aspects: profitability,solvency,operation capacity and development capacity.According to the above analysis,the company’s current management level and future development prospects are evaluated.Finally,the internal value of the enterprise is predicted and estimated by using the income method and the market method respectively.According to the predicted results,the possible risks are analyzed and the investment judgment is made.Through a series of analysis and research,this paper draws the following results: First,TAL shows a good momentum of development in both qualitative and quantitative analysis,which is worthy of investment;Second,from the macro and industry level,the online education industry has broad prospects under the support and influence of policies,technologies and other factors.Third,among the various valuation methods,the free cash flow discount model,economic added value model and market method are mainly based on the current data and focus on the future,which are applicable to the emerging start-up companies such as the TAL companies.The above conclusions provide new ideas for the study of online education industry and expand the application scope of value investment.However,it should be noted that both the company and the industry are in the initial stage of development,and the market pattern is not yet stable,so investors need to remain objective and calm when making investment decisions.Based on relevant literature theory,this paper first adopts fundamental analysis method to carry out qualitative analysis.As far as the macro environment is concerned,it is mainly grasped from three aspects: national policies and regulations,people’s living standard and the development of science and technology.The industry level mainly through its development history,growth rate,the current market segments and the main competition pattern to carry out multi-faceted analysis;For the TAL itself,its organizational framework,business scope and its core competitiveness as the focus of research.Secondly,the company’s annual report from 2016 to 2020 was used as the basis for relevant financial judgment,and the horizontal and vertical comparative analysis and factor analysis were used to carry out the analysis from four aspects of profitability,debt paying ability,operation ability and development ability,which were used as the basis for the evaluation of the company’s current operating level and future development prospect.Finally,the internal value of the enterprise is predicted and estimated by using the free cash flow model,the economic added value model,the price-earnings ratio model and the price-to-book ratio model,and the reasons for the differences are analyzed according to the predicted results and the investment judgment is made.