China Citic Bank Equity Valuation

The step of IPO of commercial banks in our country is accelerating. And the environment bank's facing now is also changing rapidly. The research object of this thesis is China Citic bank. The evaluating method in the theory of corporate finance is used to calculate the price of China Citic bank's stock, and analyze the important reasons which influence the price. The conclusion is that China Citic bank is a corporation has potentiality to grow in the middle or long term and deserved to invest for a long period. The IPO price is rational and fair, but the closing price is too high to accept for it overruns the value of China Citic bank.The thesis adopts both qualitative and quantitative analysis methods. It not only prices the stock of China Citic bank for investors, but could also be a reference for supervisor to slam the door of disadvantages, exert advantages and improve management.This thesis could divide into two parts. Fist part will emphasize on the construction of the framework of theory. It mainly introduces the evaluation theory of Inc; analyze the object and model in evaluation and the framework adapted to China Citic bank in this phase. The second part will apply evaluation theory to analyze the finance of China Citic bank and explore the SWOT it is facing now within the environment to establish fundament for the evaluation. And then, use FCFE method and relative value model to confirm the price of China Citic bank's stock and compare the differences between methods. And then explain the other factors influence the evaluation of China Citic bank, because some factors could only be analyzed by qualitative method. Finally, the conclusions will be illustrated in the end.