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Enterprise Valuation of China Construction Bank Based on Discounted Cash Flow Model

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DOI: 10.25236/busem.2018.098


Jiana Liu, Yuting Huang

Corresponding Author

Jiana Liu


In recent years, the rapid development of the financial industry plays an increasingly important role in optimizing capital and stabilizing society, which promotes the financial industry to achieve a pivotal position in the modern market economy quickly. But the capital market of our country is imperfect, and the stock price of each commercial bank is lower than the actual value, which causes inappropriate decisions made by investors, not only losing good investment income, but also restricting the development of the banking industry. Based on the above background, this paper takes China Construction Bank as the empirical analysis object, and selects discounted stock cash flow model to analyze its value. The evaluation results confirm that the stock price of China Construction Bank is underestimated, and revealed that China should strengthen the construction of financial market, and the banking industry is one of the more valuable investment objects of all stakeholders.


Enterprise valuation, Discounted stock cash flow model, China Construction Bank.