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Performance Appraisal Of The Listed Corporation

Posted on:2003-08-21Degree:MasterType:Thesis
Country:ChinaCandidate:Q ZhangFull Text:PDF
GTID:2156360065455927Subject:Technical Economics and Management Studies
Abstract/Summary:PDF Full Text Request
The performances of the listed corporations have become the focus of the investors, analysts and media. The just and reasonable methods to evaluate the performance are of great importance.Multiple Financial System is obtained by some indexes which can reflect the profitability, solvency, the ability to manage the capital, growth ability, expansibility of capital stock and the distinct of the main operation.Comparing with profit and some indexes based on profit, FCF (free cash flow) can not be easily controlled by listed corporations. FCF is a Net Present Value model that periodizes the Net Present Value calculation and classifies investments into two categories, Strategic and Non-strategic Investments. Strategic Investments are those which objective is to create new value for the shareholders, such as expansion, while Non-strategic Investments are the ones made to maintain the value the Strategic In-vestments create. FCF is used only by invest bank, and credit analysts because it is difficult to be forecasted.New Fortune put forward a new method to evaluate the listed corporation performance which is based on its Basic Growth Rate.Economic Value Added (EVA) is created by Stern. Stewart Company. It is the after-tax cash flow generated by a business minus the cost of the capital it has deployed to generate that cash flow. Representing real profit versus paper profit, EVA underlies shareholder value, increasingly the main target of leading companies' strategies.
Keywords/Search Tags:Multiple Financial System, Free Cash Flow, Basic Growth Rate, Economic Value Added
PDF Full Text Request
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