A Study on Stock Valuation of Chinese State-owned Enterprises Based on ARIMA Model and Residual Income Model
Year: 2025
Type: conference-paper
Abstract: State-owned enterprises (SOEs) have a special spot in China's capital market, but there's been a long-standing gap between their stock prices and what they're really worth. This paper focuses on China Railway Construction (CRCC), using the ARIMA model to predict it's short-term stock price and using the residual income model to figure out it's true value. The findings from our analysis show that CRCC's actual stock value is higher than what we predicted with the ARIMA model, highlighting a clear undervaluation issue. By mixing the short-term forecasting power of the ARIMA model with the long-term valuation insights from the residual income model, this study offers fresh ideas for investors, companies, and others looking to assess how SOEs are performing in the stock market. (Abstract)
Authors: Huadong Xiao, Yinyuan Xiao
Institution: Jianghan University
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W4412790112