A Research On JX Company’s Equity Investment Decision

JX company is a pig breeding enterprise.In the transition period of the development of pig breeding industry,the company hopes to expand the production scale of the enterprise through equity financing,improve the overall strength of the enterprise and finally get listed in the secondary market.This article hopes to give the investment decision suggestion through the system analysis.To a certain extent,private equity funds can solve the financing difficulties of some small and medium-sized enterprises.Equity investment can be divided into angel investment,venture capital investment and private equity investment according to the different stages of the invested enterprises.The degree of risk is from high to low.Generally speaking,Private Equity Investment is a high-risk industry.The private equity investment industry has developed rapidly in recent years.However,the number of enterprises with investment value cannot keep pace with the growth rate,which leads to the high overall valuation level of financing enterprises and the increase of low-quality financing enterprises,which disrupts the overall market environment.Therefore,with the development of the private equity investment industry in the future,it is very important to improve the professionalism of relevant investment institutions and maintain the overall market environment.Take the private equity funds to JX company equity investment’s decision analysis process as the research object,also based on domestic and foreign various theoretical research for private equity,this article has carried on the thorough research to the JX company from the basic situation,the main business,industry development situation,competitors,valuation,financial situation.Finally,judge the investment worthy or not from the investment value,risk and expected return.Firstly,this paper reviews the relevant literature on equity investment at home and abroad,and introduces the development history,investment decision-making method,risk analysis,valuation analysis and other contents of the equity investment industry.Secondly,it introduces the basic situation of JX company and compares the financial situation of JX company with the related listed companies.Thirdly,it introduces the basic situation of the pig breeding industry and the general trend of its future development,and clarifies the development prospect of the industry.Then the current valuation level of the company is calculated,analyzed and judged,and the investment income of JX company is estimated.Finally,the investment of JX company’s value is judged comprehensively based on multiple factors,and the decision suggestion on whether to invest are given.