Research on the Choice of Enterprise Value Investing Under the New Environment
All these authors contributed equally.
- 10.2991/assehr.k.211209.039How to use a DOI?
- Value investing; Quantitative analysis; Jingdong; Apple; Qualcomm
In order to provide reference indexes for investors when they use value investing to make investment decisions and assist companies to recognize the aspects, they should pay attention to in operation. We use the method of quantitative analysis in profitability, risk and market respectively to make value investment decisions among three leading enterprises in different industries. In the profitability analysis, we use return on assets and return on equity. Through the analysis in this aspect, we draw a conclusion that JD is the best choice. Since the return on equity includes return on assets and Leverage ratio, Apple and JD are more successful in generating profit internally. But the high return on equity of Apple is probably attributed to relying heavily on the debt to generate a higher net profit. In the risk analysis, we analysed and compared the companies’ quick ratio, current ratio and debt-to-equity ratio. JD would be optimal which is a well-capitalized company with high long-term debt repayment ability and minimal investment risk. In the market analysis, three indexes including earnings per share, the price-to-earnings ratio and the price-to-book ratio are chosen. We consider JD would be the best with a good price-to-book ratio and the highest price-to-earnings ratio which stands for huge development potential. Through this paper, we provide a theoretical basis for value investing and derivation. Besides, we also offer investors the experience which can assist them to make investment decisions.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Liyao AU - Jiaxin Wang AU - Wanyue He PY - 2021 DA - 2021/12/15 TI - Research on the Choice of Enterprise Value Investing Under the New Environment BT - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021) PB - Atlantis Press SP - 235 EP - 243 SN - 2352-5428 UR - https://doi.org/10.2991/assehr.k.211209.039 DO - 10.2991/assehr.k.211209.039 ID - 2021 ER -