The Valuation Analysis Of Chinese Listed Banks Based On EVA Model

As an important part of the national economy, the banking industry matters the security and stability of the national financial system. At the same time, the banking stocks are very momentous in the whole stock market, which determine the development direction of the securities market. With the acceleration of the pace in Chinese financial reforms, the valuation in listed banks has attracted more and more attention. Consequently, the purpose of this paper is to choose scientific evaluation method to estimate the value of all listed banks in China and guide rational investment for investors.Firstly, this paper introduces the research background and significance of the valuation in listed banks, and briefly discusses the research content and structure, and then reviews the study on the EVA index of the domestic and foreign scholars, to which this article has carried on the summary and evaluation, and points out the innovations and inadequacies of this paper in the following. Secondly, it investigates the traditional evaluation methods and analyses the advantages and inadequacies of the Discounted Cash Flow method, the Relative Valuation method, the Option Pricing metho and the EVA evaluation method, and compares the EVA evaluation method with the other evaluation methods to reach the final conclusion is the EVA evaluation method is more scientific and reasonable in evaluating enterprises’valuation. Thirdly, it describes the classification of the EVA valuation model, and chooses the two stage EVA valuation model for the listed banks, and then introduces the determination of each item and the adjustment related to accounting subjects in the process of the EVA calculation of all listed banks. On this basis, the paper makes empirical analysis on all listed banks based on EVA model:first of all, it calculates the EVA and REVA index of all listed banks in2012, and according to this, it analyses the operating performance of listed banks, and the results show that the joint-stock bank have the best financial performance, and the state-owned banks’performance are in the middle level, and the city commercial banks have uneven performance; and then it uses the related date from the listed banks’2010-2012annual reports to predict the EVA of listed banks in2013to2015; and in the following, it uses the two stage EVA evaluation model to calculate the enterprise value and the value of per share in all listed banks which is compared with the real price of per share in the Shanghai Securities Exchange and Shenzhen Securities Exchange at the end of2012. Finally, based on the results of the empirical analysis, it explores that Agricultural Bank of China, Industrial Bank, China Minsheng Bank, China Merchants Bank and Bank of Ningbo have more investment value in the two aspects of size and growth and then provides investment advice to investors...