Investment Value Analysis Of China Merchants Bank Co.,Ltd.

With the growing income and investment concept,Chinese stock market develops rapidly.The commercial banks contribute a lot to Chinese economic development,and take an important role in the stock market.The listed commercial banks often attract investors due to their large scale,long history and good profitability.However,the bank shares are often seen as undervalued.Therefore,it's necessary to set up a scientific evaluation method to analyze the investment value of listed commercial banks.This paper aims to establish a perfect investment evaluation system fitting to appraise Chinese commercial banks and apply it to the analysis of the stock of Merchants Bank.First of all,it concludes the general method of investment analysis,and compares the advantages and disadvantages of several evaluation methods;Then,this paper analyses the specialty of the bank industry,and find out that the combination of Harvord Analysis Framework and RIM evaluation method can be used to appraise commercial banks.Next,combining with the investment valuation system,it evaluates the investment value and the stock price of China Merchants Bank from qualitative and quantitative aspects such as strategy analysis,accounting analysis,financial analysis and valuation.Finally,the paper concludes the investment value of China Merchants Bank and gives some suggestions to the bank investors.For the explained shortcomings of this study,further improvement is expected.It can be concluded that Merchants Bank has long-term investment value due to its strong strategy management ability,excellent comprehensive ability and good shareholder return.The intrinsic value is 41.68 yuan,which is higher than the actual price of 29.02 yuan.The stock is undervalued,and is recommended to be bought.