Evaluation of Investment Value of Commercial Banks: Taking ICBC as an Example

Abstract

The banking industry is the most important component of the national economy, and people's daily deposit and loan business is closely related to banks. In recent years, the development speed of China's banking industry has been extremely fast, and many commercial banks have successfully gone public, achieving a rapid doubling of their asset size. Therefore, many investors are turning their attention to the banking industry. However, as a special enterprise with high debt characteristics, banks have differences in their investment analysis compared to other enterprises. Therefore, many scholars have also conducted research on this issue. Previous research has focused more on analyzing whether various estimation methods are suitable for investment analysis of commercial banks and providing relevant investment recommendations by comparing the estimated commercial bank value with the benchmark date value. This article takes ICBC as an example to estimate the intrinsic value of its stocks using the DDM model, compares the intrinsic value of the stocks with market prices, studies whether there are differences, analyzes the potential reasons for the differences and provides relevant investment suggestions.