Valuation Analysis of Chinese and American Listed Companies Based on Multiple Linear Regression and Grey Forecasting Model

Abstract

With the development of China's economic globalization, the stock market has gradually demonstrated its important position in the development of China's market economy. First, this paper selects the average market-to-sales ratio as the valuation level, uses an evaluation model to calculate the valuation level of the Chinese A-share market and the US NASDAQ market in 2018, and calculates the valuation premium or discount level of these two markets. Secondly, we establish a multiple linear regression model to quantitatively analyze the relationship between the valuation indicators and fundamental indicators and liquidity indicators of China A-shares and the US NASDAQ market. Then, a grey forecast model is established to predict and analyze the fundamental indicators and liquidity indicators of the Chinese A-share market and the US NASDAQ market in 2019. According to the forecast results, the valuation indicators of these two markets in 2019 are calculated. The results found that the valuation level of my country's first batch of sci-tech innovation board companies fluctuates around 5 times, which is smaller than that of the United States, indicating that China's stock market has greater potential.