The Application Of The Revised Relative Valuation Method In The A-share Market

In the Chinese capital market burgeoned today, to find a suitable value of securities research method is not easy. In particular, China's national conditions particularity than a huge difference to the European and American capital market, A-share market in the US and European markets pass over a variety of securities from many research methods are somewhat acclimatized. Further imperfect hedge investment securities and the lack of variety as well as China's capital market system, the presence of a large number of state-owned shares, among other factors, which makes full accordance with European and American stock market research methods to study the A-share market had a greater deviation, so that investors prone to errors. Therefore, the actual A-share market research methods to study the case of A-share market value of investment securities requires a fit. In this paper, combined with the use of traditional relative valuation method basic meaning, the basic principles of using the relative valuation method is based on the basis of the relative valuation of some of the parameters and conditions to make amendments to improve, and the actual situation in order to efforts to enhance the interpretation model of the value of securities.By detecting the actual market data, the valuation method after the correction to achieve better results.