Real Estate Companies’ Financial Constraints Analysis

Through theoretical analyses from both investment and financial perspectives, this paper finds three key factors affecting the value of real estate companies: ROIC, growth rate and debt ratio. This paper conducts a research about these key factors covering all domestic real estate listed companies and does a simple classification of all those companies. Suggestions about how to improve the value of a firm are given according to the classification. This paper also makes a comparison between Vanke and Greentown to illustrate intrinsic reasons for their differences.