Study On The Valuation Of China 's Listed Commercial Banks Based On FCFE Model

With the continuous development and completion of the market and The process of globalization continues to intensify in recent years. There are more and more business restructuring, mergers and investments between Banks,that make the value evaluation of commercial Banks become more and more important. Because of the particularity of operation, the particularity of structure of assets and the risk even the particularity of supervision, there is a big different between regulatory commercial bank and the general corporate to value the assessment. At present, there is no kind of evaluation method that is able to accurately assess the equity value of commercial banks, so commercial banks choice the method of equity cash flow to value assessment. Besides there are few people know the applicability of the method for the assessment of the commercial banks. Firstly, from the theoretical analysis, this paper obtains the evaluation of the equity of commercial banks from the analysis about the particularity of the commercial banks, we found the evaluation of the equity cash flow method should be chosen. Then from the empirical analysis, by constructing the equity cash flow model, using the model of typical cases that Huaxia bank equity value assessment, we get the evaluation value, similarly with the method of the equity value of the 16 samples (listed commercial banks) for evaluation and assessment of the value, then we have to do paired t test and correlation test for Circulation value. Then explain the applicability of equity cash flow model to the value assessment of commercial banks in China.