Abstract
This paper discusses the evaluation and analysis of real values of companies. A stock with high business income growth, high profitability and market turnover is evaluated with the indictors of PSR, PBR and PER in value evaluation method and cash flow discount method. The research period is from 2009 to 2014, and the annual data are used for analysis. The results are compared with the evaluation report issued in the industry. Finally, the conclusions are made based on the empirical study. First, it is found that the case company is favored by investors is that it has a growing income stock of high business income growth, high profitability, and enjoys high price-earning ratio and low cash dividend rate. When the operation growth of the company in the future declines, PSR, PBR, and PER are modified downwardly inevitably. Especially when the stock price is high, if the three major legal persons are oversold simultaneously, a severe stock adjustment is triggered in the company, and this is worth noting by the market investors. Second, according to the result evaluated with the evaluation method of relative value, it is deducted that the reasonable stock price of the case company in the coming year (2015) should range from NTD 168.01 to NTD 332.90. According to the result estimated by the cash flow discount method, if the stock price of the company should maintain at the level of NTD 200 for a long time, the cash flow of the company in the future should increase by about 5%. However, the historical data indicate that it is difficult to achieve this goal. Finally, according to the industrial evaluation report, it is optimistic to set the future target price of the case company at above NTD 300. When the free cash flow of the company presents net outflow for a long time, if the stock should further remain high, the business income of the company should further grow; otherwise, the stock price is adjusted. This should be specially concerned by the investors in practice.