Research On Enterprise Value Evaluation Of L Company Based On EVA Model

In the major context of the "pollution prevention and control battle ",more and more environmental enterprises rise rapidly.As one of the few listed companies in the domestic environmental protection industry,L company has attracted attention from all sectors of society for its corporate value.EVA enterprise value evaluation method fully considers equity capital and debt capital,focuses on the value increment and creation of the enterprise,and realizes the evaluation of the current enterprise value by estimating the future EVA of the enterprise and then discounting it to the present.This value evaluation method overcomes the shortcomings of the traditional value evaluation method,gives play to the advantages of EVA as a performance evaluation index,combined with the discount concept,provides a new idea for the value evaluation of L company.Based on this,after comparing and analyzing the advantages,disadvantages and applicability of several other commonly used valuation methods,it is found that the enterprise value calculated based on EVA can more truly reflect the operating results of L company.Therefore,this paper chooses the two-stage growth model of EVA method to estimate the enterprise value of L Company at the end of 2019.After analyzing the valuation results,it is found that the intrinsic value of L company is underestimated by the market,and the EVA value evaluation model can effectively evaluate the corporate value of L company.At the same time,the sensitivity test of the two parameters that may affect the valuation result is carried out,and the calculation found that the EVA method valuation result is sensitive to both the predicted operating income growth rate in the high-growth period and WACC,but the sensitivity to WACC is stronger,and it is recommended other researchers should be cautious about the value of WACC during the forecast period when using the EVA method to estimate the value of an enterprise.Finally,it is proposed that L Company can enhance its corporate value in four aspects:enhancing investor confidence,rationally deploying capital,implementing the concept of value management,and improving corporate performance evaluation standards.At the same time,it is suggested that L Company can be helped to enhance corporate value from five aspects:establishing an effective stock market to deliver the real value of companies,establishing a multi-level capital market system,improving corporate governance structure,strengthening the authenticity and reliability of accounting information and setting unified EVA calculation standard.