Corporation Valuation aiming at Financial Investment Purpose on Contemporary Lithium-ion Battery Manufacturer Giants

Xiaotong Chen; Yifan Chen

doi:10.54691/bcpbm.v34i.3201

Authors

Xiaotong Chen
Yifan Chen

DOI:

https://doi.org/10.54691/bcpbm.v34i.3201

Keywords:

Lithium-ion battery; Company valuation; Business risk; Investment decision.

Abstract

The importance of lithium-ion battery manufacturing is obvious in the current modern economy. As automobile manufacturers are considering environmentally friendly solutions, there are several giant lithium-ion battery manufacturer companies that have started to dominate the market. However, from the perspective of investors, it is harder for the public to understand the hidden clues behind the news and financial reports. By applying functions and indexes to the data provided in the annual financial report, the paper is aiming to analyze the potential profitability and risk within the firms to help the public with more specific and objective financial investment suggestions. The main factors that will affect the investment opinion being discussed in the text are the leverage ratio and beta asset (financial risk). Comparing the difference and meanings of these factors, the statistics would become vivid and understandable. As the conclusion suggested, every company could have its pros and cons. With higher risk, there is also a higher return accompanied. It would be critical for the investor to evaluate their level of risk tolerance and choose the company that fits their preference.

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