Abstract
With the development of markets of household electric appliances and the extinct sales performance of Midea, Midea should be viewed as a good example to explore. Many company values are overstated or understated, which has caused major problems for the stability of markets. Therefore, the author made an effort to determine the company's value so that it could be compared to its market capitalization to determine whether it is underpriced or overpriced. And in order to do that, the company was examined using the discounted cash flow (DCF) model. It was discovered that the market price of Midea should be around 384.92 billion CNY, which is slightly higher than its actual market capitalisation. As a result, although there might be some deviations made by some other factors, that might indicate that Midea has been marginally underpriced in the market.
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