Evaluation On The Listed Commercial Banks In China Based On The Discounted Cash Flow Method

With the deepening of financial reform, the capital operation activities are more and more, evaluation is the foundation of capital operation.The commercial bank evaluation system along with the development of capital market has also been given even rich connotation. Commercial bank is a more special industries, compared with general enterprise, whether from the assets, liabilities, and external supervision or management, presents great particularity. As for our country commercial Banks, also has the special system background and equity structure characteristics. From the prospectus material of already listed commercial bank, the evaluation of domestic to commercial Banks has not been given enough attention. Such as the2003listing of huaxia bank mainly uses the P/E ratio, P/B ratio combined with market trends determine the issue price;2005listing of the Bank of Communications using P/E ratio, P/B ratio combined with bank asset quality situation;2007listing of Societe Generale and Citic Bank used to inquiry to determine the issue price interval, determine the issue price. Therefore, commercial bank value evaluation is important problem.This paper mainly uses the comparative analysis and theoretical and empirical combination of research methods. The full text is divided into five parts:the first part is the theoretical foundation of the full text, and to evaluate the value of the enterprise must first make the definition of value. This part first defines the assessment value of commercial Banks, and then about commercial bank value assessment theory.The second part firstly the particularity of commercial Banks are analyzed, thus can reasonably choose the value appraisal method. And then to the current domestic several mainstream bank value evaluation method (assets value method, market comparison method, income approach,etc.) are reviewed, points out their respective in application of limitations.The third part for free cash flow discount model in our country commercial bank value evaluation of the specific application methods, this part discusses the detailed, including the model of several important parameters. This part hase playing the role which links the preceding, both in the front theory basis of commercial bank value evaluation model, and the fourth part behind the theoretical foundation of the case study. The fourth part, according to use of free cash flow discount model evaluation method.Take China’s12listed commercial Banks as exemple, further demonstrates the rationality of equity free cash flow discount model valuation method. The fifth part is the conclusion and policy suggestion.