The Relationship Between Company Financial Data and Company Valuation -- A Case Study of Longgao Shares

DOI

10.2991/978-2-38476-475-4_122How to use a DOI?

Keywords

Longo Shares; relative valuation model; case study

Abstract

The mineral industry has attracted the attention of investors because of its high value, and accurate valuation of cyclical industry companies can help investors understand the value of the investment target. Therefore, this paper discusses the relationship between the company’s financial data and its valuation through the case of Longgao Shares in the mining industry. This case not only provides certain references for the company to obtain a more reasonable valuation, but also reveals the significance and value of financial data in the company’s valuation. The research finds that the company valuation increases year by year within a reasonable range, and has a positive correlation with ROE index and a strong negative correlation with P/E index; At the same time, it is consistent with the trend of the company’s operating cash flow (except that in 2022, Longao shares are affected by the macro environment, internal operating adjustment and major asset changes, operating cash flow temporarily decreased). This paper shows that financial data is the basis of the company’s valuation, and financial data such as profitability, growth, and cash flow are the core driving factors of the company’s valuation. This paper adopts a mixed research method based on quantitative analysis and qualitative analysis, combined with the characteristics of the mineral industry such as heavy assets, periodicity and resource reserve dependence, and uses the relative valuation model to analyze the correlation between the financial indicators and the company’s valuation according to the annual financial statements and industry data of Longgao Stock Company.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Rui Wu
PY  - 2025
DA  - 2025/11/11
TI  - The Relationship Between Company Financial Data and Company Valuation -- A Case Study of Longgao Shares
BT  - Proceedings of the 2025 10th International Conference on Modern Management, Education and Social Sciences (MMET 2025)
PB  - Atlantis Press
SP  - 1106
EP  - 1113
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-475-4_122
DO  - 10.2991/978-2-38476-475-4_122
ID  - Wu2025
ER  -