Analysis of Investment Value of Chinese Tide Play Firms-Based on Hierarchical Analysis and Factor Analysis

Abstract

In recent years, China's tide play enterprises are developing rapidly, the market potential is enormous, and a large amount of capital is flowing into the industry. Therefore, the specific analysis of the investment value of the tide play industry has important research significance. This paper first analyzes the macro environment and industry situation the tide play industry faces. Finally, to deal with the complex information of financial indicators, this paper establishes a stock scoring model that combines hierarchical and factor analysis with fundamental quantitative analysis. The factor analysis method is used to reduce the dimensionality of financial indicators. The hierarchical analysis method is applied to assign weights to each factor, and finally, the total score is derived. Taking the four listed companies that focus on upstream IP creation and operation among the tide play representative companies as an example, four stocks were selected and analyzed for financial indicators. It was concluded that Bubble Mart stock scored higher than Yuanlong Yatou higher than Gaolak stock higher than Aofei Entertainment. On the one hand, this study helps investors to look at the investment value of the tide play industry more rationally and helps the tide play industry to develop benignly; on the other hand, the establishment of this paper's model is helpful to scientifically deal with the complicated financial index information and enhance the universality of financet.