Research On The Applicable Issues Of Western Valuation Methods And Models

With the devolepment of our capital market and corporate financial management, western valuation method and models have been introduced and spreaded widely.Because of the particularity of our capital market,there is many barriers in the applying of western mature models in our country.Based on this consideration,! chosed this topic as my research task.I believe,it is not suitable to using these models directly in our country.We should make remodeling and innovation on them with the guidance of valuation on our actual situation.This thesis systematically studied every applicable issues in three parts which were named by the categorization of valuation methods.In the part of discounting method,the author studied the cost of capital on emphasis,analized the misdistance of the assumption of CAPM and the situation of our capital market,made inspection of CAPM with the data of our market, established a new valuation method on capital cost, and gave a instance.In the part of interrelateing method,analized the affectionable factor of P/E,established a multivariant P/E-risk adjustment method for IPO and gave a instance. In the part of option method,studied the application of Black-Scholes Model in convertible bond's valuation and gave a instance.The new valuation method on capital cost and the multivariant P/E-risk adjustment method for IPO are innovation of this thesis.