China's Brokerages Listed Company Valuation Discussion

Highly connected with the capital market, China's securities industry has developed rapidly in the past few years, along with the opportunities such as economic growth, capital market development, improvement of industry regulation and corporate governance, continuous introduction and pilot of business innovation, etc. Relying on the future development of China's economy, securities companies still have a big room in business innovation, organizational innovation and product innovation, China's securities industry is still a stage of rapid development. On the other hand, the weakness of single profits model, great fluctuations of corporate performance and stock price show evidently in this stock market's sharp collapse. The inadequacy of the Chinese stock market and the feature of China's securities industry that is high correlation with the stock market and highβcoefficient lead to a difficult situation of stock valuation of listed companies of securities. The thesis will analyze the commonly used valuation methods, the characteristics and the status quo of the securities industry, and try to get a more appropriate valuation method for the securities listed companies.As the trend of the capital markets and cash flow of the securities' performance in the future more difficult to predict, the relative valuation method is much more convenient and visually-oriented, thus more appropriate compared with the absolute valuation method. After analysis, at current economic and market environment, the valuation of the division and valuation of the PB are considered as the comparatively reasonable and practical way of relative valuation; The price of the securities listed firms have been close to a reasonable range, of which a relatively reasonable price of CITIC is 16-25 RMB per share, has been under-estimated, and other securities has more or less over-estimated.