The Valuation Research Of Listed Security Cmpany By Improved FCFF Model

Nowadays,there are a lot of valuation methods for securities in capital markets,but the theory and method of valuation for listed securities companies are generally lacks.At present,there are 19 listed security companies in Chinese A-share market,and the listed company's financial indicators and stock prices of the market performance is significantly different.Securities,banks and insurance belong to the financial industry,the securities industry is in common with the banking and insurance industries,but the personality is more prominent.The financial industry is capital-intensive,but the risk of the secur:ities industry is greater than the banking and insurance industry,listed stock companies stock price fluctuations are more significant,changes in macroeconomic indicators and securities industry stocks are also more closely linked to the price fluctuations.Chinese listed securities companies urgently need a set of their own valuation system and valuation methods.The revenue method is the mainstream method for security valuation,based on this literature review,this paper decides to use the company's free cash flow model(FCFF)as the basis for the valuation of securities industry.In view of the importance and specificity of the securities industry,basing the original valuation model,the results are adjusted by introducing certain nonfinancial factors as valuation adjustment factors,thereby increasing the range and function of the model,and more suitable for listed security companies' valuation.According to the previous study,this dissertation set in five indicators according to the regional macro factors,which positively related to the valuation of the securities,that is,the greater the value of the corresponding indicators of the listed company,the corresponding valuation of the stock will be higher.This paper evaluates all three listed secur:ities companies in the southwest of China,found that the classic FCFF model are only suitable to the industry "non-leading”and mature high market securities company stock valuation,and based on the improved FCFF valuation model for small and medium investors to propose new investment concepts and investment advice.