The Research In Financial Valuation Of NB Commercial Bank

With the development of Chinese capital market, value investing became the main investment strategy to the investors especially the institutional investors. The fluctuation of the company's stock price is closely related to the company's internal value, which is proved by both theories and practices. Currently, the public companies from the banking industry took the very important position in Chinese capital market. So, the valuation of the banking companies drew more and more investors'attention. The researching objective of this paper is to take the NB urban commercial bank as the example, combing with the features of banking industry, to research the financial valuation of NB commercial bank.At first, the paper expatiated on the analytic framework of valuation and introduced the method of valuation of enterprises. Next, we combined the theory and the practice, using the method of case analysis, to thoroughly analyze the NB Commercial Bank and valuate it. I used downward method which is from macro-economic environment to the structure of industrial competition to analyze the operational environment of NB Commercial Bank. Then, combined with the feature of commercial bank, I analyzed the financial position and operational outcome of NB Commercial Bank in the aspects of capital adequacy, asset quality, management capability and earnings. At last, the Discount Cash Flow model was used to valuate NB Commercial Bank base on the earning expectation in 6 years. This paper provided the theories, method and experience for investors who want to evaluate the financial companies.