A Case Study Of DZ Bank Equity Value Evaluation Based On Market Approach

With the continuous development of China’s market economy deepen, "market" has become the only way for reform of capital market, asset appraisal industry should seize this opportunity to promote the application of market valuation method in the enterprise. Observing the current development trend of China’s banking industry, with the transfer of shares between banks and many commercial banks rushed to market boom phenomenon increasingly common equity value of commercial banks to assess imminent. The market asset valuation method used in our industry has not been completely universal, and therefore the value of China’s commercial banks during the assessment of how the right choice and correct use is a serious problem. Therefore, this article will combine theory and case analysis, divided into the following sections:The first section describes the background, significance and research into domestic and international literature review of relevant theories, such as selecting and perfecting the value ratio, on a comparable selection and assessment of enterprises in the banking reference index value selection.The second part of the case description is divided into the basic situation of DZ Bank presentation and assessment of two aspects. Wherein evaluating background analysis outlined the main factors under the regulatory environment of commercial banks under the current economic environment and the impact and how.The third part of the case studies, the specific context is as follows:First, a brief description of the technical route assessment, market approach and how to improve market law, improve the market approach which is mainly reflected in the following aspects:value ratio selection, comparable enterprises weights and adjustment coefficients to assess the value of the ratio of choice involves using AHP profitability indicators and risk control indicators for analysis. Followed by the calculation of financial indicators, we analyze earnings and industry-specific indicators from the following aspects, such as non-performing loan ratio and capital adequacy ratio. Next is comparable companies comparable enterprises weights and comparable indicators. Among them, the use of the variation coefficient method to determine the weight of comparable enterprises according to the degree of variation of different comparable companies comparable indicators. The comparable indicators and the general indicators and indicators specific composition. In this article, because of the particularity of commercial banks, namely general indicators reflect the profitability of DZ Bank, a special index that is reflected in the risk control ability DZ Bank. The next is from the equity liquidity and control on the size of banks and to assess the value of the bank to make further adjustments. The final step is the process of using the formula to calculate the specific process, the results, to determine the value.By the method of valuation of Chinese Commercial Bank study, one can provide a basis for pricing to investors and other stakeholders to help them make the right investment decisions; on the other hand, a clearer understanding of the commercial banks and the value of some of the main factors affecting its value, thereby contributing to the evaluation of commercial banks determine the equity transfer transaction price is reasonable reference.