Research on Corporate Value Investing: The Case of CATL

Abstract

Purpose - In the context of a significant global shift in energy structures, the development of new energy enterprises has entered a strategic opportunity period. Contemporary Amperex Technology Co., Limited. (CATL), as the world’s largest producer of electric vehicle batteries, is one of the biggest beneficiaries in the global new energy wave. This research aims to assess the intrinsic value of CATL, analyze CATL’s current situation, and explore its potential for future development. This study seeks to provide significant insights and information to investors interested in the new energy business.
 Design/Methodology/Approach - Using Contemporary Amperex Technology as a case study, this research employs qualitative and quantitative analysis methods to assess the investment value of CATL comprehensively. In order to determine CATL’s valuation, a variety of analyses are applied, such as financial, industry, and economic, as well as relative and absolute valuation methods. The study reveals CATL’s competitive advantages, market potential, and investment value in the new energy vehicle and power battery industry.
 Findings - The research finds that CATL operates in a favorable market environment with ample growth opportunities. The company maintains a healthy financial condition, strong operational and profit-making capabilities, and has high growth potential. Furthermore, CATL’s stock price is currently undervalued, offering investment opportunities.
 Research Implications - This research applies value investing theory to a specific case, making a significant contribution to the development of value investing theory. It enriches the field of corporate value investment research in the new energy industry and its related sectors. Additionally, it provides valuable references for investors in actual investment decisions.