Research On Assessment Of The Value Of The Equity Of Changsha Bank

City commercial bank is based on the developing of urban credit cooperatives.As an important component of China’s banking industry, the main economic activityof City commercial bank is to provide financial services for SMEs and local economy.With the full opening of China’s banking industry, city commercial banks have begunto seeking financing through the expansion of the scope of developing. Due to thebenefits, the transaction of equity transferring activity is increasing in recent years. Inthis context, to explore how to assess the value of the city bank’s equity, effectivelysafeguard the legitimate interests of the parties, and to provide a fair and reasonableprice reference for the commission, is of great theoretical and practical significance.Firstly, through the carding on business valuation and bank equity valuation, thearticle analyzes the difference between commercial banks and general corporate andcommercial banking features on value assessment, noting that the bank’s currentsuitable valuation method on equity mainly include discounted cash flow method andthe market method.Then through analyzing the case of the Bank of Changshavaluation of the equity transfer, the article discovers that there are existing threeissues in the evaluation process method worth exploring，there are the use of the threemarkets that selection of comparable weak comparison object, the value of select asingle value ratio and the ratio of correction subjective. Finally, according to thedevelopment patterns and industry characteristics, the article reselect the comparableobjects of Changsha Bank. Through the analysizing of the factors that affect the valueof the related bank, the article suggest increase the value of the key factors toconstruct value indicators and combine development and risk factors to amended netassets ratio again.This article is derived based on the model of the single period capitalization ofthe net asset value ratio correction coefficient, investigated the financial andoperating history of Changsha Bank and contrast banks and consider the future growthof both force and risk factors, compared with cases based only on index data for oneyear to correct the average book value of the industry is more objective andreasonable treatment, hoping to provide some assessment of personnel to carry out thereference to the city commercial banks equity valuation activities.