The Empirical Study Of Corporate Valuation Model Used In Real Estate Companies

In today's social activities, basing on value management and analysis, corporation valuation is a valuating behavior viewing the company as an integer. It has a increasingly prominent role, which becomes the basis and premise of all economic and management activities. The purpose is to analyze and measure the enterprise's fair market value, providing relevant information to help investors and managers to make recommendations and decisions.This paper discusses the status of domestic and international corporation valuation theories and models, finding that this knowledge in the West is more mature, more widespread use, which also shows that China's economic activities have a big demand for corporation valuation. Then, this paper expounds details from the basic principles, accounting adjustments, use method and other perspectives of these four kinds of corporation valuation models: Relative Valuation Model, Discounted Cash Flow Model, Option Valuation Model and Economic Value Added Model. Through in-depth comparing advantages and disadvantages of each model and application conditions, the author consider that the Economic Value Added Model is the suitable tool for valuating the current value of China's listed companies.On this basis, the Economic Value Added Model is applied to appraise real estate listed companies valuation. This paper selects industry leaders-China Vanke Co., Ltd. as the study sample, separately analyzing characteristics of the real estate corporation from levels of the macro-economic, industry and the company, which can fully explain the qualitative and quantitative basis of key parameters assessment. Under the model needs this paper adjust the Vanke's financial statements, basing on the principles of importance, influence, accessibility, intelligibility and cash payments, predicted business circumstance in future with these prior parameters, for example, Revenue Growth Rate, the Discount, WACC, estimate Vanke's total valuation by the end of 2009, carry out empirical analysis:calculated value per share of Vanke, equals the same period of stock market trading price, and reach the final conclusion.This paper wants to make more in-depth analysis and research, combining with China Vanke different stages of the operation, then uses EVA Model to assess the value, which can meet corporate strategic development and maximize enterprise value needs, and provide reference to value assessment of real estate listed companies in future.