The Appliance Of EVA Approach Since The Reform Of Equity Split

The governence and valuation of listed companies are changing since theReform of Equity Split, thus,it is the high time to develop the moresuitable valuation method of listed companies in order to cultivate theright idea of investors.The often used methods of valuation are The Cost Approach, The MarketApproach and The DCF Approach,the Approach of EVA is more andmore popular but not very clear at present.This paper discussed theApproach of valuation in details,including The EVA Approach.The innovations of this paper are as follows:First, this paper shows thelimits of tradational valuation methods and the more suitable methodsicnce the Reform of Equity Split; Second, this paper analyses thepromblems of Earning Management, Information Disclosure and InvestorRelationship Management, and tells the necessity and urgency of thepopularize of the EVA Approach.Third,the EVA Approach reflects the value added and the internal value ofcompaniesFourth,this paper shows the 3- phase model of EVA Approach acording tothe Theory of Enterprise Lifecycle.