Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)

Research and Analysis of Asset Pricing Model Based on the Empirical Test of Stock Price

Authors
Junyao Chen1, , Yupu Wu2, , Yuan Xu3,
1School of Economics and Management, Nantong University, Nantong, Jiangsu, China
2School of Business, Shandong Normal University, Jinan, China
3Accounting, Nanjing Audit University, Nanjing, Jiangsu, China

These authors contributed equally.

*Corresponding author. Email: 630160813@qq.com
Corresponding Author
Junyao Chen
Available Online 15 December 2021.
DOI
10.2991/assehr.k.211209.209How to use a DOI?
Keywords
CAPM model; DDM model; stock valuation
Abstract

The core of stock pricing is stock valuation. Although there are many assumptions of the stock pricing model in practical application, which require investors to have enough experience and more professional knowledge, the operation is difficult. Still, the pricing model provides the real intrinsic reference value of the stock, which is of great significance and worth learning in actual investment. Through reviewing the theory of stock valuation, this paper analyzes and summarizes the main theoretical models of CAPM and DDM, based on the philosophy that everything is relative and absolute. According to the idea that stock has its intrinsic value and is the stable base of stock price, combined with the actual situation of the securities market, this paper deeply analyzes the advantages and disadvantages of the two valuation models. In this article, we mainly choose the relevant data of several companies in the same period for comparative calculation and get the capital of several companies through the CAPM model. Also, we select Ansteel company and Yangtze Power company to use DDM model to calculate their cost of capital again Then the results of DDM model and CAPM are compared and analyzed. We find that Ansteel is under-priced, Yangtze Power is over-price. Through the DDM model and CAPM model, we can compare the stock’s intrinsic value and real value to make a better investment strategy.

Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

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Volume Title
Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
Series
Advances in Economics, Business and Management Research
Publication Date
15 December 2021
ISBN
978-94-6239-483-4
ISSN
2352-5428
DOI
10.2991/assehr.k.211209.209How to use a DOI?
Copyright
© 2021 The Authors. Published by Atlantis Press International B.V.
Open Access
This is an open access article under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Junyao Chen
AU  - Yupu Wu
AU  - Yuan Xu
PY  - 2021
DA  - 2021/12/15
TI  - Research and Analysis of Asset Pricing Model Based on the Empirical Test of Stock Price
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1288
EP  - 1293
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.209
DO  - 10.2991/assehr.k.211209.209
ID  - Chen2021
ER  -