Investment Value Analysis Of China Merchants Bank

Commercial bank is playing a major role to configurate the social financial resources, so how to evaluate their ability of creating value accurately and scientifically will help US to recognize capital formation, capital efficiency and sustained growth potential of the national economy. With the full liberalization of the financial industry, foreign banks settled the mainland market, the inter-bank mergers, acquisitions, asset sales, restructuring assets have become frequently, understand and evaluate value has played more and more important role in the bank development. How to determine the commercial banks’valuation is a problem should to be resolved. it direct related to the next step of China’s financial sector reform, to the long—term sustainable development of China’s financial industry. With the institutional investors’ growing and the capital market’s becoming more open, the Chinese stock market will converge with the international stock market and investors will agree with the value investment approach. The fluctuation of the company’s stock price is closely related to the company’s internal value, which is proved by both theories and practices.This thesis makes a study on the reasonable price of stock investment from the perspective of value investment mainly through a combination of theoretical and empirical methods with focus on the empirical analysis of investment value of China Merchants Bank. This thesis also makes a research and analysis of impact on China Merchants Bank brought by external factors through the analysis of the national macro—economic situation and trend of development in the future as well as banking industry. Then combined with the feature of commercial bank, I analyzed the financial position and operational outcome of China Merchants Bank in the aspects of capital adequacy, asset quality, management capability and earnings. It also makes an analysis and prediction of the intrinsic value and investment risk of China Merchants Bank from different perspectives through the application of economic value added (EVA)model, price-to-earning (PE) or price-to-book(PB) evaluation model and makes all objective and reasonable estimation about the range of investment value of Industrial Bank in the end so as to deepen vast number of investors’understandings of China Merchants Bank and provide necessary reference for investors to invest in stocks of China Merchants Bank.The research methods of this paper are to collect information of China Merchants Bank and related banking industry and use the quantitative evaluation model to make quantitative analysis of China Merchants Bank investment value of the China Merchants Bank. This thesis comes to the conclusion that China Merchants Bank is a rapid development with good performance, great potentiality and small investment risk bringing investors stable investment income and deserving investors’concerning and investment and also suggests that investors the China Merchants Bank is a bank who is worth of long-term investment.