Research On Value Evaluation Method For The Real Estate Quoted Company In Our Country

The real estate industry is the pillar industry of China which relates to the national people livelihood. With the convening of the Eighteenth National People’s congress, urbanization is put on the agenda, and the leaders have repeatedly stressed that urbanization should be as the new engine of China’s future economic development. In the next few years, there will be more and more rural population rushing into the cities which can stimulate the realty business prosperous. Meanwhile, because it develop very rapidly in the past gold decade which causing the industry a lot of foam, so the state implemented a series of severe macro-control. The competition in the real estate industry is more and more fierce, so those companies must constantly improve their intrinsic value to seize the opportunities in this context for making themselves more strong and ensuring they will not be eaten by big fish and maintaining unique core competitiveness.In the capital market, different people have different attitudes to the real estate industry, so the majority of investors (especially common investors) can not grasp the direction of the investment of the real estate and a lot of companies which have potential for development are facing diversified financing difficulties. Now only hundreds of listed companies in the so many real estate companies are acting as the standard-bearer in the Chinese real estate market. The relatively accurate and reasonable assessment of those listed real estate companies by appropriate methods are beneficial for all parties. For investors, the process of evaluation and the results can guide the direction of investment and investors can use rational resources to achieve maximum benefits. For financial institutions, they can make decisions about the credit scale. For company managers, on the one hand, they can use the differences between the results of the valuation and market value to make strategic decisions; On the other hand, they can understand the driving factors of the companies value and then improve companies management. For the government and the relevant regulatory authorities, they can strengthen market access, and improve market laws and regulations to ensure the real estate market run smoothly and healthily through understanding the driving factors of the companies value. As the real estate industry has its own characteristics, and also the three traditional enterprise valuation methods have their premise, advantages and disadvantages, so in order to seize the value of the listed real estate companies accurately, we must combine the characteristics of the assessment of real estate industries value with a variety of valuation methods superiorities and weaknesses. It has much practical significance to identify suitable method for the assessment of listed real estate companies value on the basis of certain evaluation purposes.This paper has seven chapters:Chapterl is the introduction. Explain the background and meaning of the paper, the research ideas and research methods.Chapter2is the literature reviews. Because of the few research for the valuation methods of the real estate company at home and abroad, this part starts from the valuation methods at home and abroad, and then gradually transit a few theories about the valuation methods of real estate company.Chapter3is theoretical analysis. This part starts from the concepts of real estate company, company value and the assessment of companies value, and then explain their features, finally discusses two theoretical basis of the assessment of the value of the company.Chapter4is the description of overview of listed real estate companies in China and the analysis of the influencing factors of the selection of the valuation methods. This part starts from the basic situation of real estate industry, then analyses the characteristics of it, and also analyses the effect of the purpose of the evaluation, assessment objects, assumptions and the value types when select the valuation method of real estate listed companies in China. So that will make a theoretical foreshadowing for the comparison among different methods in the next chapter.Chapter5is the appraisal and the selection of valuation method of the listed real estate companies in China. This part firstly make a comparison among different methods’ superiorities and weaknesses and the range of application. And then combine with the above-mentioned chapters researches to finally find the most appropriate method for the assessment of listed real estate companies value -EVA model.Chapter6is EVA evaluation method application in Wan Ke company valuation.This part use the EVA method to assess the value of that company and then draw relevant conclusions by analyzing the result.Chapter7is conclusion and problem. This chapter describes some related notes and conclusion in this paper on the basis of above-mentioned chapters.This paper use a method which combine normative research with case studies, and take the typical real estate listed company as the study object. Through analyzing the characteristics of those companies as will as making a comparison among different methods superiorities and weaknesses, assessment assumptions, evaluation purposes and so on, finally finding the most suitable method for the assessment of listed real estate companies value-EVA method.The main contribution of this paper:Put forward the suitable method for Chinese real estate listed company value evaluation. This paper combine the characteristics of the real estate industry and the assessment of the listed real estate companies value, evaluation purposes with the advantages and disadvantages of the three corporate valuation methods,and finally analyze a method which suitables for the value evaluation of the real estate listed companies in China, so that can provide a reasonable value evaluation method reference for the all parties in the market.