Analysis of Intrinsic Stock Value Based on Discounted Cash Flow (DCF) Model -- Take China Construction Bank (601939) as an Example

Junliang Qian; Qinzhe Tang

doi:10.54691/bcpbm.v35i.3237

Authors

Junliang Qian
Qinzhe Tang

DOI:

https://doi.org/10.54691/bcpbm.v35i.3237

Keywords:

Dividend discounting model, intrinsic stock value, rational investment

Abstract

The DCF model is a simple and effective way to predict the intrinsic value of a stock by discounting future dividends. In this paper, China Construction Bank is used as the research object and valued by the DCF model [1]. The research results show that the current share price of China Construction Bank is undervalued, and with a large gap between the stock price seen by the public and the true intrinsic value of China Construction Bank, there is still plenty of room to go in the decades to come. so it is recommended to increase the stock to wait for future gains [2].

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