Research methods valuation the shares of a commercial bank
Оksana U. SHCHERBINA
Candidate of Technical, docent, Department of Finance and Credit
Russia, Siberian Institute of Management – the branch of the Russian Academy of National Economy and Public Administration under the President of the Russian Federation
The paper studied the methods for assessing the value of shares of a commercial bank in the evaluation process, most of the commercial organization on the basis of the determination of free cash flow. The experience of evaluating the commercial banks, with the result that revealed a stage stock assessment within three approaches: cost, income and comparative.
The main purpose of this paper is to analyze the feasibility of the use of three methods for assessing the shares of a commercial bank to enhance its investment attractiveness.
In the present study to determine the value of the shares being valued bank considered three methods: the first two methods of evaluation based on multiples, namely in terms of the relationship of the course share to its earnings (P / E) and in terms of the relationship of the course the action to its carrying value (P / BV), the third - on the model of evaluation Edwards - Bell - Olson.
The article studied methods for estimating the shares in the three approaches and presented in a comparative analysis of the market value of the shares according to the methods as the most promising in terms of their use in the assessment of the market capitalization of the banks in order to increase their attractiveness. This analysis revealed a number of problems as well as advantages and disadvantages of valuation techniques used shares as part of determining the value of the banks on the basis of free cash flow, and not generally accepted in business valuation of the two cash flow models.
It is concluded that the use of the proposed methodology for assessing possible to obtain the fair value of commercial bank shares, compared with the current market value as a result of supply and demand that can fully be seen by potential investors as the most profitable investment product, the proposed market securities modern conditions, which creates, in the end, the investment attractiveness of the commercial banks.
evaluation, promotion, market value, commercial bank.
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