The Free Cash Flow In The Valuation Of Commercial Banks In China

From the beginning of the establishment of the enterprise system, the enterprise value assessment became the focus by the earner of the enterprise, investor and creditor. Not surprisingly, as a special kind of enterprise, commercial banks'value assessment absorb many stakeholder's attention. Moreover, commercial banks play important roles in the finance system. And the finance system takes great effect in the economy development. So researching the commercial bank's value assessment has theoretical and really meaning.The article based on the concerning classical theories, has discussed some popular enterprise value assessment approaches. After comparative analysis, I draw the conclusion that cash flow discount approach is most mature in theory. And the effect of free cash flow in the enterprise value assessment is more the any other cash flows. After the analysis of commercial banks, I think the FCFE discount approach is most suitable for commercial banks'value assessment. But there's seldom article about researching in commercial bank's value assessment with FCFE discount approach. It is because of the particularity of the commercial banks. Moreover, I exhaustively introduce the application and the special character of free cash flow in commercial bank Depending on the performance of Chinese commercial bank and capital markets, I took listed banks as the objects, try to research commercial bank's value assessing in China after the practical analyses on the fitness of FCF to Chinese capital market.