Evaluate The Investment Value Of Industrial And Commercial Bank Of China By Using Discounted Cash Flow Model

As my country's economy has entered a stage of high-quality development from high-speed development,the development of my country's financial market has also reached a new level,the scale has gradually expanded,and the system has become more and more perfect,so more and more residents and institutional investors choose to invest their idle funds in stocks.In the past development,China's stock market has experienced a series of reforms,which have become more and more perfect in all aspects.The strategies of assessing the value of listed corporations tend to be logical,evaluation data selection is also more accurate and reasonable.The stock price of listed corporations can reflect the internal value of companies to a large extent.However,in the stock market of our country,the value of commercial banks has been facing the situation of being underestimated.On the one hand,commercial banks with high-quality financial assets,high profitability and high growth potential do not get high expectations matching them.Bank managers hope that the market price of the stock market can fully reflect the value of the asset itself,so as to facilitate the long-term development of the enterprise;on the other hand,investors have many puzzles in the investment process,for the sake of considering the safety of their own assets,I don't know how to invest so as to maintain and increase the value of assets.Therefore,it is urgent to evaluate the investment value of commercial banks objectively.As a typical representative of state-owned commercial banks,industrial and Commercial Bank of China is also facing the situation that the investment value is underestimated.If this phenomenon is allowed to continue to develop,it may make investors have pessimistic expectations to a certain extent,and it will also bring a series of negative effects on the integration industry,which is also not conducive to the development of China's capital market and the improvement of market efficiency.This paper takes industrial and Commercial Bank of China as an example,mainly from the following five aspects.The first part is the introduction of the article.The second part is literature review,which classifies and sorts out the references read in the early stage,and makes literaturereview.The third part is the influencing factors of industrial and Commercial Bank of China's investment value,mainly from the basic situation of industrial and Commercial Bank of China,the profit model,the influencing factors of value creation,the selection of value evaluation methods and so on.The fourth part uses the discounted model of equity cash flow to analyze the investment value of industrial and Commercial Bank of China.According to the calculated data,we can find that the share price of ICBC is undervalued to some extent.The fifth part is the conclusion and suggestions.On the basis of the above empirical research,it is concluded that the stock price of industrial and Commercial Bank of China is undervalued to a certain extent,and its stock has long-term investment value,and puts forward suggestions to investors and managers respectively.