The Application Of EVA Evaluation Method In Domestic Securities Market

As China's capital market will gradually open up and the stock market will walk up to maturation and standard, the value of China's investment in the future will gradually become the mainstream of the securities investment. Value analysis will receives china's securities investors attention increasingly, portfolio investment is the key to the valuation of the securities stocks. There are the three major ways of the current assessed value of the company: discounted cash flow method; relative value of law and economic profit law. Economic Value Added EVA is presented by the United States Stem Stewart management consulting firms in the first in the 1980s, mainly used in the Companies operating performance evaluation, later been introduced to assess the value of the field, assessed value for the company. In recent years, some domestic professional institutions also began to use EVA theory to assesse the value of the China's listed companies. But up to now, Publicizes about applies EVA in the negotiable securities investment are very few, especially in the secondary market investment. For the most Small and Medium Investors, Many investors have gradually accepted the capital market value of the investment concept, But unable to find a suitable method of valuation of the shares of listed companies valuation, only judged by the data which provided by the evaluation mechanism, or more resort to the technology analysis According to the Theory on Corporate Value and EVA, in combination of the actual situation of securities market, construct a relatively simple and effective model used to assess the value of companies listed companies in China's stock investment analysis, thus give reference to the vast number of investors, it will help investors use the value idea on the investment decision-making, thus contributing to the benign development of China's securities market.This article first introduced the enterprise value appraisal theory as well as comparative analysis to three kinds of methods of enterprise's value assessment-discounted cash flow method, the relative value of the assessment method and EVA, then a comparison between the two other methods with EVA was conducted in this study, obtained the advantages, limitations Application of EVA, then focus on EVA valuation theory and application of this theory to assess the value of China's Listed Companies. After that take listed company Shanying paper industry as an example, Introduced the EVA estimate theory computation process. Finally take to be listed's steel and iron industry as the example to verificate the correlation between EVA and the Change of Stock Price of the Listed Companies.