Research and Analysis of Asset Pricing Model Based on the Empirical Test of Stock Price
These authors contributed equally.
- 10.2991/assehr.k.211209.209How to use a DOI?
- CAPM model; DDM model; stock valuation
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.
- © 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 -