A Research On Value Evaluation Of Bank Of Communications Based On EVA

With the changes in our country’s economic environment and the implementation of various financial policies,the issue of valuation of commercial banks,which is a significant position in the financial industry,has become increasingly important.At present,our country’s capital market is still immature,and the EVA evaluation method considers the cost of capital and helps to improve the level of risk management.Valuation of commercial banks can help them better adapt to various policies and changes by accurately reflecting their value for long-term development.On the basis of previous studies,this thesis uses EVA evaluation method to calculate the value of Bank of Communications.First,it introduces different valuation methods,and compares the limitations of these methods used in commercial bank valuation,and further analyzes the reasons of EVA evaluation method used in commercial banks suitably.Secondly,based on the analysis of the commercial bank’s value influencing factors and particularity,the thesis analyzes the financial status,property rights structure,equity structure and other aspects of the commercial bank to determine the current status and future plans of the commercial bank,then determine the EVA adjustment accordingly,construct the EVA evaluation model suitably.Thirdly,analyze the Bank of Communications’ basic condition,compute the Bank of Communications’ historical EVA value,and integrate the analysis of the effect of IFRS 9 on the Bank of Communications,calculate and compare various indicators and enterprise value before and after the implementation of IFRS 9.Finally,predict the EVA value of Bank of Communications in the next five years,estimate the value of Bank of Communications at the end of 2020,add market valuation,and conduct comparative analysis and sensitivity analysis on the results to verify the credibility of the EVA valuation method for Bank of Communications valuation.According to the conclusion of the full text analysis,the author raises specific countermeasures and suggestions for the future development of the Bank of Communications.The research results of the thesis show that the value of Bank of Communications is seriously underestimated,the current stocks of Bank of Communications still have a certain degree of investment,and the execution of IFRS 9 may have a reduced effect on the valuation of Bank of Communications.Therefore,Bank of Communications should seizes the opportunity during the "14th Five-Year Plan" period,adapt to the requirements of IFRS 9 quickly,improve risk control capabilities,and pursue higher quality Long-term development.