An Investment Value Analysis And Comparison Of Four Listed Banks In China

With the continuous development of capital markets in China,investors investment philosophy also changed, rational investment philosophy gradually replace the traditional non-rational investment idea, the concept of analyze the investment value of listed companies has been more and more attention and recognition. Banking plays a vital role on financial sector stability and development of China, banks plate also has been concern by investors and securities analysts.So,use financial data and valuation methods to analyze the evaluate of the banking can provide investors with some investment advice. This paper describes and summarizes the current evaluation theories and methods of valuation, combines with the special nature of listed commercial banks,selects the evaluation indicators EVA,PE and PB, combined with financial analysis, analysis and comparates the investment value of Industrial and Commercial Bank, Construction Bank, China Merchants Bank and Shanghai Pudong Development Bank, in order to provide investors with investment advice.This article consists of the following six parts.The first part introduces the background and significance of this paper, summarize the foreign and domestic investment evaluation theory and methods, combines with the special nature of listed commercial banks, selects investment evaluation method for analysis four listed commercial banks. The second part analyze the macroeconomic environment and macroeconomic policies, so as to explore the development prospects of China's commercial banks. The third part uses of financial data, from solvency, operation capacity, profitability, growth capacity, ownership structure, cash flow and other aspects analyze Industrial and Commercial Bank, Construction Bank, China Merchants Bank and Shanghai Pudong Development Bank,and Constructs DuPont evaluation system for evaluating comprehensive financial. The fourth part uses of Economic Value Added, supplemented by PB and PE, assess the four listed commercial banks in the performance evaluation and investment evaluation. The fifth part comprehensive comparison of the listed banks,provides investment advice for them.The sixth part by the analysis of above,we concluded that the development of the four listed commercial banks relatively stable, they have long-term investment value.The innovation of this paper is used the economic value added,PB and PE, combinated financial and non financial indicators to analyze and evaluate the listed commercial banks,which can reflect the investment objectives situation fully. The disadvantage is that this paper did not predict future cash flows of the bank, at the same time uses of PE is not accurate in our stock market,uses PE to assess may maked errors.