The Empirical Study Of The Real Estate Companies' Stock Valuation On The Basis Of Residual Income Model

With the stock market price continuing to rise and housing price rising rapidly recent years.The bubble in asset prices is expanding rapidly . It has been began to study the formation mechanism of asset price bubbles and measure the approach.The study has great theoretical and practical significance, in which,the analysis of the real estate market'stock valuation is more important and urgent.Residual income model represents the company's intrinsic value with using the book value of equity and the expected present value of residual income. The so-called residual income refers to the difference bewteen the company's net income and shareholders'pay required. This model has some application advantages relative to other valuation models.It has become more popular by its research and application with success in recent years. In this paper, the Residual income model is used to estimate our real estate investment value of listed companies and then guide the investment behavior of investors.This article discusses the basic theory of Residual income model, and compares the other three major investment valuation models of stock assessment,then assess the stock investment theoretical value of characteristics and defects. The Residual income model is the optimal stock valuation models by comparing the four valuation models .Based on the country's industry classification identified by the database, it takes to the statistical research for accounting earnings, net assets and other accounting datas of listed companies of the real estate industry in 2005-2009. It is revealed that the relationships among the accounting income of listed companies, accounting information related to accounting income, the net asset value,stock prices and investment value.Based on the Residual income model stock investment value theory and in-depth study, with thinking about the actual situation in our country, it takes certain improvements to the model for obtaining a model more reasonable and easy to operating model. The article takes an empirical study on stock market value of equity investments in real estate industry by using the improved Residual income model. On this basis, it is compared to the stock price and investment value of the degree of determination, and further analysis the reasons for difference bewteen the bubble and the investment value of the stock price. It is benefit to analysis the current reality of the real estate industry for stakeholders and government in decision-making,and introduce control measures related to the real estate industry. It provides some implications for the reality.