The Research On The Model For Comprehensive Assessment On The Investment Value Of Listed Banks

The finance industry plays the crucial role in the national economy, the banking industry is the core of the modern finance; as an important component of the integrative national power, banking has quite important status and function. As more and more commercial banks became listed companies, the banking sector is attracting more and more attention.There are rare analytical methods for studying the investment value of listed banks despite a great many methods for studying the operational performance and investment value of the listed banks have been introduced. The paper which is on behalf of the securities investors, aimed at the industry particularity of the banking and the profitability of the listed companies tries to handle scientific analytical method to build up the comprehensive assessment model.The paper adopts Analytical Hierarchy Process (AHP) which applies to make comprehensive evaluation with multiple indexes and which is the systematic analytical method that combines qualitative analysis with quantitative analysis to evaluate the investment value of listed banks synthetically. First of all, it divides the criterion floor into ten hierarchies according to the characteristics of the banking industry, including profitability, ROE, growth ability, liquidity, assets quality, scale and market position, corporate governance, innovation ability, human resources, and brand. Secondly, it carries on the comparative analysis for every criterion layers, and screens 42 objective indexes from the ten layers to form the investment value evaluation system. Then, it uses AHP to calculate out the weight modulus of every index. Moreover, it changes every index value of listed banks into values in range of [0,1] with no dimension, receives quantization value for every index value, which then times the corresponding weight coefficient to get the linear sum of the results and sets up the comprehensive assessment model. Finally, it makes comprehensive evaluation and arranges in an order to the present 8 listed banks, and carries on concrete comparative analysis, and it compares stock price tendency of the 8 listed banks in 2007 with the synthetic order that is arranged in paper, to prove the accuracy of comprehensive assessment function, and verify the practicability and feasibility of the model in actual operation.