Study On Enterprise Value Evaluation And Improvement Methods Of Chen Dian International

As an electrical listed company majoring in power net, Chen Dian International has different properties in corporation evaluation comparing to general industry. This paper has carried on a detailed analysis on Chen Dian International using classical corporation evaluation theory. And from then, a preliminary analysis was done about the corporation evaluation theory and method of the whole power industry.Preview studies about corporation evaluation seldom involved a specific industry. However, due to country monopolization and power supply shortage, the analysis of power industry evaluation is very different with the general industry. This is the original intention of this paper. This paper conducts two kind of analysis, one is theoretical analysis, and the other is quantitative analysis. After reviewing the characteristic of the power industry development, the paper makes a careful analysis to the industry advantage of Chen Dian International, and also deals with the company's advantage in the view of position, system, scale, management and internationalization. The results show that on the policy, system and development environment aspect, Chen Dian International not only has the characteristic industry development advantages, but also has the advantages that are not possessed by the same industry. And these form unique component of its company's value.In order to disclose the inside operation state of Chen Dian International, this paper makes a quantitative analysis using classical financial performance appraisal method and cash flow analysis. Firstly, this paper reviewed the existed corporation evaluation theory; and then conducts a financial performance evaluation using classic Financial Ratio, Du Pont's ratio and income quality analysis. The results show that the financial condition of Chen Dian International is well, the major business income increases progressively year by year, and the debt paying ability is good. From the analysis of future profit ability and the evaluation based on the EVA method, this paper further conceived that the benefit of Chen Dian International investment exceed the cost, namely the company gained the increasing profit and has fine profit prospects.The last part of this paper makes a helpful discussion about how to promote corporation value in Chen Dian International. The Share Repurchase, Investor Relationship Management and Knowledge Management was introduced in this part. Our analysis will offer a reference for the whole power industry in the field of how to evaluate the power industry corporation value.