Equity Evaluation Of Agricultural Bank Of China

At the end of the year2011, the market capitalization of16listed banks accounted to1/3of China’s total stock-market capitalization, it is thus clear that bank board is the weighting board of China’s large cap. The four giant state-owned commercial banks’capital stock carry off the top four places at the A stock market. But the performance of their stock price is not as well as that of listed companies of the same accounting index of other industries. ABC, as the last one of the four to complete listing, the stock price is the lowest, and taking it as a example to explore its inner value will have an important realistic significance for finding out whether the stock price of our bank board is at a reasonable price. Moreover, the comparative analysis of the competence of the top four giant banks also has a special reference to find the gap between ABC and the other three and then improve ABC"s value.This thesis could divide into two parts. The first part mainly calculates the stock value of ABC; The second part mainly explores the comprehensive competitiveness of the four giant state-owned commercial banks to find the gap between ABC and the other three.Specifically, in the first part, firstly it generally reviews the evaluation theory of Inc and the current popular means of evaluation;then based on the features of commercial bank, select FCFE model as the main way and P/E、P/B as aided methods to evaluate the inner price of ABC. The results are as follows:at the end of the year2011, through FCFF, the inner price per share of ABC is3.19RMB; through P/E, the price per share is2.58RMB; and through P/B, the price per share is2.72RMB. Lastly, regarding the advantages and disadvantages of the three methods, we conclude that the price per share of ABC is underpriced, and thus reflect that the whole prices of the bank board are underpriced.Specifically, in the second part, it firstly introduces the relationship between enterprise competitiveness and enterprise value, then mainly analyses the competitiveness of the four giant state-owned commercial banks by CAMEL, and finds that ABC falls behind the other three in aspects of "C","A","M" and "E", then put forward some policy proposals from the above four aspects.