Investment value analysis of listed steel industry companies on the main board based on factor analysis method

Abstract

This study focuses on the steel industry, summarizing and clarifying relevant research by previous academics about investment value. Firstly, based on qualitative research, this study investigated the macro, meso, and micro factors that affect the investment value of listed companies in the iron and steel industry through fundamental analysis. The second part studied the financial factors of listed companies in China’s steel industry at the micro level through quantitative analysis. Ten evaluation indicators are selected from four aspects of growth capability, profitability, solvency and operating capability to establish the evaluation indicator system that reflects the comprehensive investment value of steel sectors on the Chinese stock main board. 28 steel companies listed on the main board are selected as research sample. Empirical analysis is conducted to study these selected sample companies through the factor analysis method and generate an investment value comprehensive score ranking in which Yongjin Co., Ltd is the top winner. The evaluation method adopted in this study is also applicable to investors in terms of analysis and decision-making to avoid risks and improve returns.