Financial Valuation Models For Comparison With Reality

The theory of financial evaluation is the core theory of the chrematistics, and the evaluation of the corporation is the core of the theory of financial evaluation. The proper evaluation of the corporation is not only the base of realizing the financing aim, but also important for the corporation managers to program the financial activity, for the outside investors to make decisions of investing, for the stock analysts to seek the chance of investing, and for the credit analysts to evaluate the risk of the loan provided by the bank.Under the financial economic situation, with the increasing number of the investors, the activities of the stock-market corporations in operating and financing are represented on the price of stock. The theory of corporation evaluation has come into an wider field, the financing managers can know the real economic value of the corporations and make scientific decisions in investing and financing by evaluation. The investors and the financial analysts can find the inter value of the stocks in order to decide whether the stock was worth of invest, and also to provide the valuable information. So the financial evaluation has turned into an necessary work hi financing activities. But now in our country, the development of theory and the activities in evaluation have dropped far behind the developed country. This article made comparison and analysis between the several models of financial evaluation, in purpose of applying those evaluation models to the economic activities more scientifically.In the first part of the article, a simple presentation of all the evaluation models was given. The second part is the comparison and analysis of the advantages and disadvantages. In the last part, the article analyzes the application of different evaluation models in the pricing of state-owned stock and the rationality of evaluating the state-owned stock by the free-cash-flow-counted model. Then it also exhibits the difference between the price of sold and the internal value by the data from stock market...