CHAPTER 3: SOLUTIONS & RECOMMENDATIONS TO ENHANCE/ IMPROVE STOCK VALUATION OF COMMERCIAL BANKS IN VIETNAM 71 Implications for other banks.... 71.[r]
(1)Valuing stocks of commercial joint stock banks - The case of Sacombank
Đặng Quốc Hiệp Khoa Quản trị Kinh doanh
Luận văn Thạc sĩ ngành: Kinh doanh quản lý; Mã số: 60 34 05 Người hướng dẫn: TS Chu Thành, NCS Hà Nguyên
Năm bảo vệ: 2010
Keywords: Ngân hàng; Quản trị kinh doanh; Cổ phiếu; Quản lý tài
Content
TABLE OF CONTENTS
ACKNOWLEDGEMENTS i
ABSTRACT ii
TOM TAT iv
List of tables viii
List of figures viii
List of abbreviations ix
INTRODUCTION
CHAPTER 1: COMMERCIAL JOINT STOCK BANKS: INTRODUCTION TO VALUATION OF STOCK
1.1 The introduction of commercial joint stock banks
Commercial bank- an important intermediary financial institution
1.1.1.1 The definition of commercial banks 5
1.1.1.2 The financial intermediary role of commercial banks 5
1.1.1 The organization and operation of commercial banks
1.1.2.1 Organization and management of commercial banks 6
1.1.2.2 Capital of commercial joint stock banks 8
1.1.2.3 Some basic criteria for evaluating the operation efficiency of commercial joint stock banks 13
1.2 Legal bases and stock valuation methods 15
1.2.1 Concept of stocks and valuing stocks 15
1.2.1.1 Concept of stocks 15
1.2.1.2 The concept of valuing stocks 16
(2)1.2.2.1 Some regulations of stock valuation 18
1.2.2.2 Regulations of valuation methods 19
1.2.2.3 The regulations of land usage right 23
1.2.2.4 The regulations of specifying the advantage values The stock valuation methods: 25
1.2.3.1 The method of dividend discount model (DDM model) 28
1.2.3.2 The discounted cash flow method (DCF) 36
1.2.3.3 The valuation method based on P/E 39
1.2.3.4 The assessment method based on the value of net assets 41
1.2.3.5 The valuation method based on P/B 42
1.2.3.6 Methods to assess banking stock 43
CHAPTER 2: ANALYSIS OF COMMERCIAL BANK STOCK VALUATION - THE CASE OF SACOMBANK 45
The establishment and development of commercial joint stock banks in Vietnam 45
2.1 General introduction of Sacombank: 46
2.2.1 Sacombank stock: 46
2.2.2 Some general features of Sacombank: 48
2.2.2.1 Operational cirteria of Sacombank during 2005-2009 49
Asia banking sector overview and forecast: 51
Valuation analysis on the stock STB 53
Valuing the stock STB with DDM method 53
Valuing the stock STB with the method of P/E coefficient: 56
2.3.1 Valuing STB with the method of net value of assets: 57
2.3.2 Analyzing the P/B coefficient of STB as of year end 2009: 58
2.2 Evaluating the results of valuing the stock STB 59
Advantages and difficulties in valuing stocks of Vietnamese commercial joint stock banks 60
2.6.1. Advantages in valuing stocks: 60
2.6.2. Difficulties in valuing stocks 61
2.6.2.1. Difficulties from commercial banks themselves 61
2.6.2.2. Difficulties from the business environment 62
2.6.2.3. The lack of understanding of investors 66
2.6 Major lessons taken out of Sacombank 67
CHAPTER 3: SOLUTIONS & RECOMMENDATIONS TO ENHANCE/ IMPROVE STOCK VALUATION OF COMMERCIAL BANKS IN VIETNAM 71 Implications for other banks 71
Recommendations to enhance the quality of banking stockvaluation 74
Recommendations to commercial banks: 74
(3)3.2.1.2 Complying with rules and accounting standards 75
3.2.1.3 Setting up expertise departments for valuing stocks 75
3.2.1.4 Performing the information announcement 75
3.2.1 Recommendations to the government 76
3.2.2.1 Improving the legal framework for valuation and system of related legal documents 76
3.2.2.2 Methods related to the market information 80
3.2.2 Recommendations to investors 83
CONCLUSION 85
LIST OF REFERENCES 87
Appendix 1: Country Default Spreads and Risk Premiums 90
Appendix 2: Asia banking sector peer comparison 94 References:
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