The Residual Income Model-based Real Estate Valuation Research

Real estate and the national economy, many industries are closely related, with strong industrial relevance. In addition, the development of the real estate industry but also on people’s livelihood, is to provide people with better living conditions for the material basis. So, in today’s complex economic environment, the prospects for future development of the real estate business? How its valuation? These are the key issues to be addressed in this article. Firstly it explains the Harvard financial analysis framework, including strategic analysis, accounting analysis, financial analysis and prospect analysis, enterprise value evaluation methods, especially residual income assessment model. Then, integrating theory with practice, the use of the Harvard financial analysis framework and the residual income model to a more comprehensive assessment of the value of Vanke. Include:analyzed from multiple perspectives of the real estate industry development status and future trends and competitive landscape, combined with the the Vanke overall strategic analysis; Second, the combination of the three accounting statements, profitability specific and comprehensive, operational capacity and solvency analysis of Vanke’s financial condition and operating results, and on this basis, Vanke forecast; third, the use of the residual income model to assess the enterprise value of Vanke.In this paper, qualitative, quantitative and case studies a combination of methods to assess the enterprise value of Vanke, research methods to evaluate with reference to the enterprise value of real estate; findings need to help companies improve operational and financial strategies, and help investors form the correct investment decisions.