Research On The Valuation Of My Country's Commercial Banks Under The EVA Model

In China's overall financial system,banks occupy a significant proportion,and are the core of modern economic development.Therefore,whether the banking industry can develop healthily will have an important impact on the smooth operation of the national economy to a large extent.With the further development of socialist market economy,the pace of bank listing is also further accelerated.However,with the marketization of interest rates and the implementation of a number of policies,the competition among banking industries is further intensified.Mergers and acquisitions among commercial banks have become increasingly frequent.Value assessment plays an important role in asset assessment.Among many commercial banks,China Merchants Bank has always been favored by investors because of its early listing and relatively good operation.However,since 2016,China Merchants Bank's share price has not performed well and is quite different from investors' expectations.Therefore,this paper intends to evaluate the value of China Merchants Bank through reasonable value evaluation methods,and then make suggestions on its investment value and enterprise development prospects.First of all,this paper sorts out the relevant value evaluation theories of enterprises and expounds the enterprise value evaluation model.Then,considering the particularity of commercial banks,it chooses EVA model to evaluate China Merchants Bank and analyzes the feasibility of choosing EVA model to evaluate enterprises.Secondly,this paper analyzes the valuation environment of China Merchants Bank,mainly including the macro environment for the development of China Merchants Bank,business analysis and governance structure analysis within China Merchants Bank,and financial situation analysis,which are all indispensable factors for enterprise valuation.Thirdly,on the basis of the above analysis,the EVA model is used to estimate the stock price of China Merchants Bank.Finally,it analyzes the applicability of the value evaluation results of China Merchants Bank and provides suggestions for investors to make investment decisions.Through the evaluation of this paper,the main conclusions are drawn as follows:(1)Enterprise valuation will become more and more practical in the investment field and can guide investors to make important investment decisions;(2)Through comparative analysis,EVA model can better reflect the operation status of commercial banks,and is more suitable for valuation analysis of commercial banks.(3)The current market value of China Merchants Bank's share price is lower than the predicted value in this paper.Given its better profitability and future development potential,investors are advised to buy shares at the right time.