EQUITY VALUATION MODEL OF VIETNAMESE COMPANIES IN A FOREIGN SECURITIES MARKET - A SIMULATION APPROACH

摘要

Listed companies in Vietnamese securities market have not employed any consistent equity valuation models; some models based on the traditional Capital Asset Pricing Model (CAPM) produced unpersuasive results because the CAPM's assumptions do not hold in an emerging market like Vietnam. The problem has been considered as one possible reason for the unpredictable stock prices in the Vietnamese securities market. The purpose of this paper is to propose a suitable equity valuation model of Vietnamese companies under the concern of international investors. In particular, the paper studied the Hybrid Adjusted CAPM (AH-CAPM) model with an international securities market in the region being used as a benchmark. The proposed model was also tested with a typical Vietnamese company to check the feasibility of the model and the ease of capital mobilization from foreign securities markets.