Enterprise Value Assessment Of Longking Co.,LTD.,

In recent years due to haze weather occurring frequently, the environmental problems such as water pollution and garbage siege impact on public opinions in a dashing pose. In order to solve this problem, government has issued a series of environmental policies. With active industrial policies guiding, investment in environmental protection industry from all circles of society is also increasing constantly. According to the data of national bureau of statistics, it shows that during the "12th five-year","beautiful China" and "new urbanization"indicate the positive development trend of environmental protection industry, and the total amount of investment is expected to be more than5trillion yuan which is triple compaed with the "10th five-year" investment amount. Under this big background, the personage inside industry are optimistic about the environmental protection industry, but investors are more concerned about whether the environmental protection stocks which has been silient many years will have the long-term investment value, due to the the environmental protection "storm" brought by environmental pollution disasters.Fujian Longking Co.,LTD.has been engaged in air pollution control equipment research and development has reached more than forty years history, is China’s largest electromechanical integration equipment manufacturing bases in flue gas dust removal and desulfurization denitration device research and development of atmospheric pollution control equipment, has become the leading enterprises of the nationwide environmental protection industry. In this paper we will use Economic Value Added model and Black-Scholes model to evaluate the enterprise value of this company and conclude the real enterprise value, expecting useful investing and analysis method to potential investors. In addition, it would be of great importance to regulating the Chinaese securities market, avoiding investment risk and realizing the reasonable investment and so on.First of all, in this paper we will introduce the background, the meaning and the purpose of the study, the references related to the enterprise value evaluation at home and abroad, as well as the research methods and innovation points of this article. Secondly, we will introduces the basic information of Fujian Longking Co.,LTD. and use the traditional financial indicators to analyze its operation and financial situation in a detailed way. Then, we will introduce and compare between the international popular enterprise value assessment methods in brierf,and explain the reason in choosing the "Economic Value Added and "Real Options"method through the above context of the Fujian Longking Co.,LTD. in a deep way. Finally, we will use EVA model and BS model to evaluate the enterprise value of Fujian Longking Co.,LTD. respectively,and the compare the evaluation result with its market value of stock on the evaluation base day. We will draw the conclusion that its market value of stock has been underestimated, and the stcok has long-term investment value.