Research On Stock Valuation Of Semiconductor Enterprise With Sino Wealth Electronic As An Example

With the progress of science and technology,and the changing social demand,Chinese semiconductor industry has welcomed a rare development opportunity,showing a rapid and good momentum of development,many semiconductor listed companies have become the focus of investors in the securities market.However,due to the irrational investors,heavy speculative atmosphere,accompanied by market ups and downs,quite a number of investors not only did not achieve the expected return on investment,but also fell into a situation of serious losses.Numerous experiences and lessons have shown that the key for both individual and institutional investors to share the investment returns of semiconductor companies in the securities market is to have a reasonable understanding and grasp of the valuation level of the companies,and invest wisely accordingly.As more semiconductor companies go public,how to evaluate the semiconductor enterprises will gradually become the focus of market investors.At present,the valuation method of PE ratio is often used in the valuation practice of semiconductor enterprises.The method of PE ratio valuation is indeed simple and easy to operate and convenient for peer comparison.However,due to the imperfection of Chinese capital market,strong speculative atmosphere in the secondary market,stock prices often appear abnormal fluctuations,PE ratio is often constrained by sentiment,limited to a single indicator,valuation results can mislead investors.In this paper,both DCF valuation model and EVA valuation model are used to assess the value of semiconductor companies.We not only use free cash flow to evaluate the semiconductor companies,but also use EVA method to find the value of semiconductor enterprises,the combination of the two methods is helpful to improve the reliability and rationality of valuation and to make better investment decisions.This paper includes five chapters.The first chapter is to understand and study the related papers of valuation at home and abroad,and to lay a theoretical foundation for valuation application,in the second chapter,this part analyzes chinese semiconductor industry,focusing on the existence of China's semiconductor industry environment,the status quo of development analysis,revealed the semiconductor enterprise valuation factors.the third chapter research and comparison the different valuation methods and choose DCF valuation method and EVA valuation method to evaluate the case of this paper.In chapter 4,two valuation methods are used to analyze the case of Sino Wealth Electronic Ltd.Calculate according to the standard procedures and get results,compare the results with the stock price of the company,summary and evaluate the valuation results.In chapter 5,EVA method and DCF method are suitable for the valuation of the company,and EVA method can fully show the attributes of science and technology,growth potential and development prospect of the company by adjusting accounting items such as R & D cost.Therefore,before applying DCF valuation method and EVA valuation method to other semiconductor enterprises,we should fully consider the industry development background,be familiar with the technical characteristics and management characteristics of the enterprise,make clear the strategic position and value driving factors of the enterprise.