Analysis of Enterprise Value Investment Strategy

Abstract

As the stock market continues to develop and improve, people gradually realize that the stock market is also a good investment and financial management choice. Compared with insurance and funds, it has a high rate of return, attracting people to join. Benjamin Graham's value investing is one of the common investment methods, laying the foundation for the in-depth fundamental valuation used by all market participants in stock analysis. Allowing investors to obtain high returns using simple data analysis methods. This article analyzes two popular stocks in the beverage market, Starbucks, and PepsiCo, to select stocks worth investing in. The main research method of this article uses the Price/Earnings-to-Growth (PEG) Ratio, the Profitability Ratio (GP/A) and the Gross Margin Ratio in value investing to compare the strengths and weaknesses of the two companies. The results of the study found that Starbucks' three main values are better than PepsiCo. After further analysis and research, currently, Starbucks may be a stock worthy of investment in the beverage market.