Citic Bank Corporate Valuation

Using scientific method to evaluate corporation value, and then revealing the key elements of affecting corporation value have the important realistic significance for promoting the value of corporation.This article analyzes the strength and the challenge of the commercial bank and considers that the healthy and continuing development of macro-economy of our country, the great loan demands of medium-sized and small enterprises, the daily increase of personal financial product and service needs, the good external environment which forms by the quick development of intermediate business product and service, the daily fierce competition from the same business and the incessant sharpening of internal and external risk have made the further development of commercial bank full of challenge.This article analyzes the product and service, the market and customer base, the competition advantage of China CITIC Bank and has the opinion of that:the bank is one of the most competitive enterprises among the medium-sized and small bank which has the top-ranking capability of corporation customer service, the high quality customer base, the continuing and high speed development of retail bank business, the internal value base on the management team who has excellent performance and plenty of experience in our county.Based on an in-depth analysis of the development of Chinese banking industry and China CITIC Bank's business, we use Discounted Cash Flow Method (DCFM) and Market Value Method (MVM) to get result of enterprise value evaluation from market. The result shows that its enterprise value range isï¿¥6.13-ï¿¥6.55 per share on June 30,2009.In the end, this article brings forward the strategy of promoting the enterprise value of the bank by Delta-plus method which reveals the key element of affecting the value of China CITIC Bank. And it thinks that Main Business Sustainable Growth, Discount Rate, Interest Margin, Income Tax Rate, Business Tax and Additional Tax Rate have the significant influence for the enterprise value. Seeking for the long-term sustaining development, enhancing the risk management, promoting intermediary business forcefully, increasing the interest margin, striving actively for the advantaged tax policy are the effective paths of promoting enterprise value.