Author(s)

Xintao Wu

Corresponding Author

Xintao Wu

ABSTRACT

Value investment plays an important role in stock investment for individuals or enterprises. This paper checks the robustness of Value Investing, with the theories proposed by Warren Buffett, Benjamin Graham, and David Dodd. Enterprise Value Multiples and Equity Value Multiples are applied for comparative analysis on the samples from 2018 to 2019. By calculating the equity value index, enterprise value index, corporate growth index, etc., the values of two stocks (McDonald's and Shake Shack) were analyzed, and the value of identifying corresponding stocks is also identified from multiple dimensions, so as to provide the decision basis for investors.

KEYWORDS

Value Investing, Enterprise Value Multiples, Equity Value Multiples, Intrinsic Value