Study On Value Evaluation Of Agri-Enterprise

As the coming of value management era and the development of economic globalization, there is high tide of capital operation in global scale. Merger and reorganization between enterprises are becoming brisk. The scope of capital operation is becoming large, while techniques are constantly creative. In order to compete with other enterprises and make reasonable decisions, the valuation theory & method has become the focus, which attracts more attention of people increasingly. Enterprise's value evaluating, which depended on certain supposition conditions, is the process to determine the enterprise's value by making use of financial theory, model and method. In the other hand, with china succeeds joins in WTO, each industry of national economy would face to more fiercely international competition environment. As the very important organization form which participating in the global competition of agriculture, Agri-enterprise is the main part to impel agribusiness development, adjusting agricultural structure, revitalizing agricultural economic, enhance agricultural development and promoting farmers income. Now, agri-enterprise is becoming the main force of promoting agriculture development and the base of the agriculture's international competitiveness.This paper is based on the background that value evaluation of enterprises is increasingly becoming important and urgent, and the development of agricultural enterprises is becoming imperative, which proposed that we should concern to the value of agricultural enterprises, and continuously strengthen the evaluation of agri-enterprise's value so as to promote agri-enterprise developing rapidly and healthily.First, the paper discussed the topic's study background and expounded the significance of agri-enterprise's value evaluation. And then, the paper summarized the internal and external research achievements on enterprise's value evaluating. The external research focused on the discounted cash flow method, surplus income method, the option pricing model and EVA(Economic Value Added)evaluation model. The internal research mainly based on the external research, it hasn't formed the system theory. The value evaluating method that suits to china enterprises is still at the fuzzy stage. No more specialized research on value evaluation of agri-enterprise. Secondly, It discussed the concept and the characteristics of agri-enterprise, and analyzed the agri-enterprise's present situation and industry prospect, including analysis and define of the agri-enterprise's value. Then, this paper looks the classic theory of evaluation as the basic, introduce some enterprise valuation methods, including cost, market, free cash flow, EVA and option methods etc. And make a compare with these methods to analyze the applicability to agri-enterprise, then proposed that free cash flow model and economic value added model are more effective and suitable to agri-enterprise than other methods in our china. Because these two methods are scientific and reasonable to reflect the agri-enterprise.Thirdly, this paper focuses on the entire process that the economic value added model applied in agri-enterprise. Before discussed the theory of EVA model, the paper analyzed the characteristics and elements of agri-enterprise's value evaluation. Then, the paper carried on a comprehensive analysis of EVA valuation model, including the calculation and the amendment of all indicators in EVA model.Lastly, the paper tried to make the valuation of Xinnongkaifa (600359) as an example for empirical analysis to demonstrate the whole assessment process that the EVA model's application in agri-enterprise. And through this example, analyzed more in-depth on the various parameters which are used in EVA model while evaluating the agri-enterprise's value and the final evaluation result to display EVA valuation model's feasibility and effectiveness to the agri-enterprise's evaluating.