A Study On The Value Assessment Of Listed Companies Based On Economic Value Added

As China joined WTO,the Chinese financial industry will open gradually and the Chinese capital market will also be gradually maturing.Value invest will occupy the leading position in the Chinese capital market in future.So,how to assess the true value of the listed companies accurately has become the subject that securities circle pays close attention to and investors most care about.The method of enterprises' valuation based on Economic Value Added(EVA)has provided a way for us judging and analyzing enterprises' intrinsic value.EVA is a performance evaluation index newly emerged in western countries since 1980s.Devoid of the limitations of the traditional indexes,EVA reflects the value more accurately that the company has created for its shareholders during a certain period.Nowadays,EVA has already replaced the profits indexes in developed countries and become the most accurate criterion for measuring company's performance.Fortune Magazine regarded it as.the most.popular notion in finance. Foreign practice has tested that the application of EVA valuation model can not only reflect the value of companies accurately,but also leads the govemors to make a point of value management to promote the healthy development of companies.Because of the still not perfect capital market of our country,the research on EVA in nation-wide at the.starting stage yet.But this can not hinder EVA as a kind of advanced tool from popularizing at home.With the development of Chinese capital market and companies, and considering the request of modern operation mode,enterprises in China must pursue to value create as their primary goal.Here I combine the theoretical analysis with factual analysis,the quantitative analysis with qualitative analysis to introduce EVA and its application on the listed companies.After introducing the beginning,development,calculation method and relevant theories of EVA,the thesis compares with current popular value assessment models and promotes the model based on EVA.The focal point of this thesis lies in the theory analysis about the advantages and practicability of value assessment model based on EVA,introduction of its calculation method,and combining the SANY Heavy Industry Co.Ltd,to carry on a real example analysis.At the end of this thesis,I discuss some difficulties about the application of EVA in China,and give some suggestions.