Research On Value Evaluation Of China Construction Bank Based On Residual Income Model

With the complete opening of the economic market,foreign banks have also entered the Chinese financial market.Reorganization,listing,and asset sales among banks have become more frequent.Commercial banks,as one of the most important institutional participants in the financial market environment,The economic activities of the century are playing an increasingly important role.On the other hand,commercial banks also have the particularity of their operations-currency is an important business object,and currency and credit are closely linked,and credit itself has great uncertainty,which shows that traditional evaluation methods Value evaluation is more difficult.Therefore,theoretically find out the key elements that affect the value evaluation of commercial banks,so as to explore a method suitable for the value evaluation of commercial banks in China.This is undoubtedly related to the smooth progress of China's financial industry reforms and also affects the long-term and sustainable development of China's banking industry.There are many defects in the traditional value research methods in the West,and they do not perfectly reflect the value of China 's commercial banks.Therefore,this article deeply analyzes the special nature of commercial banks and finds a more scientific method based on actual and theoretical basis.Study the value of commercial banks.The research in this paper draws the following conclusions: First,the residual income model has practicality and operability in the application of Chinese banks,especially listed commercial banks,and it makes up for the shortcomings of traditional value assessment methods to a certain level.Secondly,the discount rate has a great influence on the valuation results.The rationality of the discount rate selection will affect the scientificity and reliability of the residual income valuation.Finally,the use of the residual income model emphasizes the process of creating corporate value.Shareholders and stakeholders can use this model to discover the intrinsic value of commercial banks and help them invest in the financial investment market.However,the following limitations are also unavoidable:(1)The three major assumptions of the model may not be satisfied at the same time,making it impossible to accurately predict.(2)The measurement of non-financial information still needs to be optimized.(3)The potential operating risks are not fully considered in the model.(4)The stock value does not fully reflect the true value of the bank,and it may be affected by the short development of China's financial market.