Evaluation Method Research On Commercial Bank Of China

At present, China is vigorously promote financial reform, restructuring and listing of commercial banks, the restructuring of financial enterprises, and foreign and private capital entered the Chinese banking sector is increasingly common, at the same time, it also raised the specter of commercial banks, whether cheapen intense debate. China’s banking industry in attracting foreign investment, many people think that there are undervalued, the reason, defects exist on the assessment methods and the omission of some important values.Assessment of the value of China’s commercial banks, on the one hand, can provide a basis for pricing to investors and other stakeholders, to help them make the right investment decisions; the other hand, a clearer understanding of the commercial banks value as well as some of the major factors affect its value, thus helping to improve the value of China’s commercial banks.This as a combination of theory and case, the article is divided into five sections discusses:The first part briefly describes the background and significance of this study, discussed followed by the research ideas and research framework of the article, a brief summary of the expected contribution of this paper.Second part lists the foreign commercial bank on valuation methods course, from the beginning of the twentieth century to date relevant foreign representative views and on. Meanwhile, the valuation of the domestic dynamic elaborated.The third part of the first enterprise value assessment of the assumptions of the four basic methods, content, characteristics and scope of application. Subsequently, the paper briefly describes the particularity of the commercial banks compared with other firms. The end of the chapter discusses how to choose the valuation of commercial banks.Merchants Bank, the fourth part, for example, first a brief case description, followed by the use of three approaches to case analysis, comparison and analysis of three methods of assessment results.The fifth part is the research findings and thinking. According to the foregoing theory and case studies come to the conclusion of this study and put forward several key factors affecting the value of commercial banks, but also analysis of defects and shortcomings of the research paper.The main contribution of this paper is:first, the discounted cash flow value of law, economic value added approach and market approach is applied to the case of the Merchants Bank, not only for our understanding of the financial condition and operating results of commercial banks to provide a reference, and stakeholders (e.g. investors) provides a basis for pricing. This paper presents the main factors affecting the value of commercial banks, provides reference and reference basis for commercial banks in China to improve its value. At the same time, there are many deficiencies:First, it discusses the factors that affect enterprise value, but these factors are specific how enterprise value and to what extent the enterprise value does not do in-depth study. Second, the discounted cash flow method assessment of the value of China Merchants Bank, how to better estimate the discount rate, as well as forecast future cash flows has yet to be explore.