The Analysis Of Value On Rockwell Automation Based On EVA Model

Rockwell Automation, Inc. (NYSE:ROK) is a leading global provider of industrial automation power, control and information solutions that help manufacturers achieve a competitive advantage in their businesses. As the financial crisis broke out, the industry automation is seriously affected. To control costs, Rockwell Automation has taken to do the human resource reduction, close the branch, etc.. However, the quarterly sales of Rockwell Automation indicate that the profit still decreased a lot. The strange thing is with this contrast, the stock price climb greatly. Employees of Rockwell Automation also expressed concern about the company's future prospects. To this end, the author evaluates the market environment of industry automation and analyzes the future strategy of Rockwell Automation, compares the competitiveness of Rockwell Automation.Besides, The author estimates the company real value based on the EVA model which can give the investors and employees of Rockwell Automation good reference. At the mean time, investigation on the EVA model implementation will perfect the value analysis theory and improve the decision-making ability of investors and managers.The article uses the method with the combination of theory analysis and practice implementation. In the theory, mainly focus on the research of EVA usage on the company value evaluation and the detailed steps on calculation; in practice, analyze the value of Rockwell Automation by using EVA model and provide the result for the analysis. The main contribution of the article is that it shows the detailed steps on how to use the EVA model to analyze the company value which is supposed to provide the good reference for the broad investors.