Valuation Analysis Of China Merchants Bank Based On EVA Model

In the past decades,a rapid growth has occurred in the Chinese banking industry.In the process of perfecting and improving the bank's organizational structure,what is indispensable is the authority of bank value assessment.It must follow the rules and be correct and reasonable.However,one of the reasons why China's domestic IPO price is much higher than the value of enterprise participation or pricing dispute is due to the immaturity of China's capital market and the value management concept that has not been widely promoted and the valuation method that has not yet embarked on the international track.Therefore,in order to reduce the impact of uncertainty in capital operations,we need more effective bank valuation methods,and ultimately the efficiency of the entire banking industry will be greatly improved.This paper applies EVA valuation method to the valuation of China's joint-stock commercial banks.Based on the theoretical basis of EVA enterprise valuation,it considers the diversity and particularity of its business operations,the difficulty of cash flow estimation,the intangible assets valuation.Difficulty and minimize the factors affecting the accuracy of impact assessment.By using comparative analysis method,case analysis method and model construction method,this paper chooses China Merchants Bank as an example,adjusts EVA formula according to the adjustment principle of EVA index,calculates the EVA performance evaluation index of China Merchants Bank,and makes reasonable use of EVA after historical calculation.Scientific methods to predict the future value of EVA,and then through the value evaluation model based on EVA value evaluation method to get the internal value of enterprises.In order to highlight the rationality and superiority of commercial banks using EVA index,this paper makes a comparative analysis between EVA value index and traditional financial index.It is hoped that this paper can provide practical research experience for the application of EVA evaluation method in joint-stock commercial banks,and provide more true and accurate investment information for investors,so as to improve the effectiveness of decision-making.This paper concludes that the evaluation model based on EVA evaluation method is more suitable for commercial bank valuation.Compared with the traditionalfinancial evaluation method,this model is conducive to the sustainable development of banks,while evaluating profitability,but also can understand their own overall actual value.Therefore,EVA enterprise value evaluation method is an effective evaluation tool for commercial banks in enterprise value evaluation,which has certain scientific and practical significance.The combination of EVA evaluation method and bank value has important theoretical and practical significance for the development and promotion of commercial bank value evaluation in China.