Proceedings of the 2019 4th International Conference on Modern Management, Education Technology and Social Science (MMETSS 2019)

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Automobile Business Valuation Analysis：Taking Three Automobile Companies as Analysis Samples

Authors
Xianyue Liu
Corresponding Author
Xianyue Liu
Available Online October 2019.
DOI
10.2991/mmetss-19.2019.10How to use a DOI?
Keywords
Automobile industry, Financial ratios, Discounted cash flow (DCF) model, Relative valuation model.
Abstract

Automobile industry makes considerable contributions to the worldwide economic annually. However, the industry is experiencing a significant evolution. Many leading companies are exploring their ways to survive under the changing environment and are improving their strategies. Thus, examining the impacts of such actions on company value should be meaningful to investors when making investment decisions. In this paper, Ford, Tesla, and Ferrari are chosen to valuate due to their differences in features and similarities in future developing plans. This study first analyzes financial ratios, and then drawing on the previous studies of corporate valuation, the discounted cash flow (DCF) model is utilized to value each stock, and the capital asset pricing model (CAPM) is adapted to calculate discount rates. By comparing the resulted intrinsic value per share with the actual market price, the author concludes that Ford is undervalued while Tesla and Ferrari are both overvalued. Following the empirical research, some investment suggestions are given to investors, and some limitations are pointed out at the end of this paper, together with several improvement advice.

Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2019 4th International Conference on Modern Management, Education Technology and Social Science (MMETSS 2019)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
October 2019
ISBN
978-94-6252-808-6
ISSN
2352-5398
DOI
10.2991/mmetss-19.2019.10How to use a DOI?
Copyright
© 2019, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

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TY  - CONF
AU  - Xianyue Liu
PY  - 2019/10
DA  - 2019/10
TI  - Automobile Business Valuation Analysis：Taking Three Automobile Companies as Analysis Samples
BT  - Proceedings of the 2019 4th International Conference on Modern Management, Education Technology and Social Science (MMETSS 2019)
PB  - Atlantis Press
SP  - 40
EP  - 50
SN  - 2352-5398
UR  - https://doi.org/10.2991/mmetss-19.2019.10
DO  - 10.2991/mmetss-19.2019.10
ID  - Liu2019/10
ER  -