Analysis On The Investment Value Of China 's Listed Banks Based On EVA Valuation Model

The banking is absolutely the core of the financial system in any country, plays a vital role in financial intermediation in the economy of a country, its status and importance is self-evident. Up to now, China’s total of 16 banks in the A-share market. Listed commercial banks as blue chips in China’s securities market, either from the asset size of the banking sector, the ability to affect the stock market or the future growth trend, the development of listed banks have attracted attention of the general public. To the majority of ordinary investors, they pay more attention to that which listed banks have more investment value.There are many ways to assess the intrinsic value of the enterprises, this article focuses on three approaches to assess enterprise value which are cost approach, income approach, market approach methodology, and after a brief introduction and a comparative analysis, that the current method is the most appropriate term gains commercial banks valuation method. Followed by comparative analysis of discounted cash flow model and the EVA model applicable conditions under the income approach, the final decision adopted EVA model to calculate the investment value of China’s listed banks, analysis and judgment.This paper selects the all 16 listed commercial banks as the sample to analyze the investment value. By constructing the EVA two-stage model, collecting and collating historical data of various listed banks to adjust their net operating profit after tax, the cost of equity capital, the calculation of equity cost of capital, and then estimate 2013 EVA value of each listed banks. To take advantage of the business value derived formulas derived the total value of each listed banks, combined with the flow number of A-share listed banks at the end of 2013, calculate its value per share.The value per share was no difference adjustment, comparing with the actual stock price of the listed bank, the thesis draws that suitable investment stock. And the paper finally puts forward some countermeasures and the suggestions to enhance the investment value of the listed banks in china.