The Analysis Of Shanghai Pudong Development Bank On FCFE Discount Model

After a period of fast developing, China’s stock market slump deeply in the past four years.2009,2010up to the present, has maintained the downturn of the state. The stock quickly evaporate, bring business value large shrinkage, banking stocks are also more than that.However, on the contrary, close2-3year, only Liaoshen region has a large number of new joint-stock commercial banks and city commercial banks have opened, the original commercial bank in the Shenyang as the center, extended to Liaoyang, Tieling, Benxi Huludao surrounding, showing a steady growth, and quickly expansion of the development trend. Two kinds of phenomenon exists between the apparent contradiction, to investors and managers of enterprises have brought great confusion.This paper carry on the inside value analysis and research, which takes the Shanghai PuDong development bank as an example.In this text, the author concerns that bank is a special type of corporation, fund of commercial banks is mainly complicated savings which are of a great variety and difficult to calculate. The function of commercial bank liabilities is different from other enterprises, and the bank’s cost is generally lower than the others. So using the FECF model to valuate Bank Corporation’s value can avoid the obligation cost’s discussing.This paper can be divided into six components as follows:The first chapter is introduction, mainly including the selected topic significance, research ideas and innovation.The second chapter regards the concept, mainly including theory of valuation method from domestic and outside.The third chapter talks about financial analysis of a public listed company. According to analyze the financial reports of last few years of Shanghai Pudong development bank, we know about the financial situation and management efficiency of the company. With the comparison of some other comparable companies, we get a full corner analytical evaluation of the company’s financial standing.The forth chapter gives an evaluation of the target company. Firstly, fund of commercial banks is complicated and difficult to calculate, while using the FCFE discount model to valuate Bank Corporation’s value avoids the obligation cost’s discussing. Secondly, we use the adjusted beta as the foundation to calculate the equity cost rate, and draw lessons from parts of EVA to show the net profit to show the equity cash flow. Thirdly, we set growth rate in three periods.The fifth chapter gives an evaluation of the target bank and a suggestion of investment behavior. The work is to predict the future equity cash flow, and calculate the final stock price. At last, the paper predicts the value of the bank in the future.In the last chapter, the writer summarizes the whole contents of the paper and the problems we must pay attention to.