Comparative Study of Evaluation of Stock for High and New Technology Industries and Traditional Industries
|School||Zhejiang University of Technology|
|Keywords||Stock value High and new technology industries Traditional industries Growing capacity|
The stock market has become an important part of the market economy in the21stcentury today. The scholars also have done a lot of research for the evaluation ofequity shares. But because many imperfect factors still exist in the Chinese capitalmarkets, and the mainstream approaches of evaluation of equity shares：cash flow ofcharged, the relative value, economic value added all have their own limitations, sothere’s no precise answers for all publicly listed company to value shares in China.Nowadays high and new technology industries become more prosperity. Manyscholars’ researches suggest that because of their different characteristic of industry,their equity shares present different. Based on that, this paper will divide the industryinto two classes——High and new technology industries and traditional industries toevaluate their share value the first time. The purpose is that: the evaluation of stockvalue model of each industry can reflect their characteristic well. It’s significant toevaluation stock value.At first I Expounded the purpose and significance of the paper, conclude themainstream evaluation laws. Then established multiple liner regression model whichstands on the following assumptions: half-effective market theory assumed、stockprice correlated with stock market quotation、stock price correlated with stock marketassumed and different industry with different growing capacity theory assumed. Therevisional stock price was dependent variable; the company’s basic financialindicators were independent variables. After that I collected4years (2007-2010) datafrom Shenzhen listed companies, put A sudden companies as sample, divided theminto2classes on the two industries’ standard. Using SPSS as statistic tool, and thenget2models for each industry based on the result of the4years. At last use the dataof2011to test the accuracy of the2models before.The conclusion of this paper stated that:(1)The evaluation stock value model ofhigh and new technology industries contains more financial cabilities including:profitability、shareholders’ profitability、solvency、operational capacity and growingcapacity. But that of the traditional industry doesn’t. There’s no growing capability init’s stock valuaton model.(2)The profitability、shareholders’ profitability、solvency andoperational capabilities’ coeffients of traditional industry model is bigger than that ofthe high and new technology.Based on the two results, high and new technology industries isn’t stable in finance condition, which depends on many financial indexs.So it should pay more attantion on steady: Keep smooth profitability.The stock valueof traditional industy depends on profitability more, which need more R&D to keepits future development.