Using Different Pricing Models to Evaluate REITs in Taiwan

• Main Authors: Tsai-ping Tu, 杜采萍
• Other Authors: Ming-Chi Chen
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/86c59f

碩士 === 國立中山大學 === 財務管理學系研究所 === 97 === Evaluation of the real price for financial assets has been an important issue. This thesis used four approaches, namely free cash flow method, dividend discount method, C.R.R Binomial Numerical Analysis of real-option theory and capital-budgeting techniques, to evaluate the real value of REITs in Taiwan. Fubon No.1, Cathy No.1, Shin Kong No.1 are chosen as cases to study in this thesis. This thesis analyzes their financial statements and historical data to estimate the parameters in those models and compute the real price of REITs. Our empirical results show that the real prices estimated from the free cash flow approach are higher than market prices by 30%. The real prices from the dividend discount method are higher than average market price by 300%.The real prices from the third approach, present value method, are higher than market prices by 10%. After considering the opportunities managers hold by the real-option approach, the real prices are higher than the market value by 200%. These results suggested the current prices of REITs in Taiwan are undervalued. It appears that anchoring tendency might be an explanation that prices of REITs in Taiwan are fixed in certain levels.