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Research on Investment Value of Listed Shipping Company under Market Volatility

Author: YangZuo
Tutor: HeQiong
School: Wuhan University of Technology
Course: Business Administration
Keywords: Investment value Comprehensive Evaluation Method Shipping business Listed companies
CLC: F552.6
Type: Master's thesis
Year: 2010
Downloads: 58
Quote: 0
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Abstract


The shipping industry is a typical cyclical industry, the cyclical fluctuations of the shipping market, the business of shipping companies have a huge impact, the results of operations of the enterprise usually cyclical changes, the assessment of intrinsic value model for shipping companies do not apply. Therefore, the evaluation of the intrinsic value of the unique method to study the shipping companies, for enterprise managers to provide more detailed and accurate references, and more aware of the value of the enterprise itself and the problems, and then make the right management decisions, to avoid the risk of market fluctuations ; conducive to investors and creditors a clearer understanding of the business of the company, to provide a scientific basis for the investment decisions of investors. The shipping price index is a comprehensive reflection of the shipping market boom, this study first to use the the seaborne price index the shipping market fluctuations law. The freight index historical data analysis, summed up the shipping market fluctuations law, and determine the fluctuation cycle. Existing valuation methods, such as: the absolute valuation method, the relative valuation method, and the comprehensive evaluation method, and applicability analysis of existing valuation methods, choose the comprehensive evaluation method assessment of intrinsic value of the shipping companies . The intrinsic value is determined by the cash flow, shipping companies can ensure the continued flow of cash, depending on the creativity of the present and future cash flows. For shipping enterprises operating characteristics of the selected 14 indicators to reflect the ability of these two aspects, the establishment of comprehensive evaluation index system, using factor analysis, a preliminary analysis of the investment value of each company to identify the main factors affecting the results of operations of each company sort the consolidated results of the companies to determine the initial investment value of the company. Due to market fluctuations, different annual operating performance of each company there is a big difference, both with market volatility was synchronized trend always growing trend. Therefore, select a period of market volatility (4) factor composite score of the year, the results of changes in trend clustering, to make a comprehensive evaluation, and ultimately determine the investment value of each company. The results show that: the present and future cash flows from the ability to create common determine the intrinsic value of the shipping companies, the ability of any one is too poor, will seriously affect the intrinsic value of the shipping companies. Business managers should make appropriate management decisions for enterprises operating weaknesses, and constantly improve the intrinsic value of the enterprise. Shipping companies shipping market volatility makes the intrinsic value of a fluctuating trend. Investors only comprehensive comparison of the annual results of the shipping companies to grasp the the shipping market fluctuations trend in order to make the right investment decisions.

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CLC: > Economic > Transportation and economic > Sea transport and economic > Waterway transport economics > Corporate organization and management
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