The Principle Of Relative Valuation And The Empirical Text On Listed Companies Of China

With the establishment of modern enterprise system and the constant development in the market of property right, as we all know that any asset, no matter it is financial or material object, even it is a company, can be evaluated. Moreover, how to evaluate the real value of an asset? From the practices of pricing overseas, we can find that there are three basic methods can be used to evaluate: the discounted cash pricing method, the relative valuation method, and the real option valuation method. And, the discounted cash pricing method is the popular method of valuation, but in the fact of forecasting cash, growth, and risk the method is subjective. The relative valuation is the method that is widespread used, but it is also prone to abuse, the reason is that it is difficult to choose the relative companies and control the discrepancy. There are many advantages in the theory of the real option pricing method, however, the method is base on a highly developed securities markets. Considering the actuality of our securities markets and the using universality, this paper using the relative valuation method to price the company of invest or manage real estate, meanwhile, draw the conclusions. The paper can be divided six chapters:The first part is introduction. It includes thesis, the meaning and the purpose of the paper, the research method, innovations and disadvantages.In the second chapter we definite the value of enterprise from some aspects, in the conclusion of this part we make a definition of the value of company of the paper. Then it explains the method of pricing, and analyzes the differences of methods;The third chapter finds the theory of the relative valuation method----the efficient market hypothesis, and the empirical texts about the EMH, in the summary of the chapter, we denote that our stock markets had already satisfied the condition of the weak form efficiency and it is the basis of the relative valuation;The next chapter is the crucial part of the paper. Firstly, we definite the relative company, secondly using the statistic to select the relative companies, answer the question of choosing the relative companies, in the last part of this chapter, we make a empirical test on the estate companies, and get some conclusions.In the chapter five, we use the description text to explain the applicability of the relative valuation in our capital market, and analyze the factors that affluence the value of the company, and use the analysis test to exam the efficiency of relative companies in pricing, the conclusion is through using the cluster analysis we can promote the pricing accuracy.The last part of this paper we make a conclusion of the test, pointing out the significant of selecting relative companies in the practice of evaluation, from the macro and micro aspects the relative pricing method plays an important role in the whole sections of evaluation. It can be a method guide the investor and also can be a useful method to test the efficiency of the market.