Study On The Improvement And Application Of Corporation Valuation Method Based On Economic Value Added (EVA)

China's Growth Enterprise Market listed on the Shenzhen Stock Exchange, which is the important step to improve the multi-level capital market in China, is conducive to the diversification of China's capital market development. As China's capital market efficiency and the standardization enhance further, and in order to achieve maximize shareholder wealth, the theory of value investing and value-based management is increasingly respected by the people based on the company's intrinsic value. The enterprise value evaluation problem has becomes the nucleus concerned. Due to the inherent lack of equity capital costs not considered, the traditional performance indicators can not measure the newly created value, accurately reflect the changes in shareholder wealth, and assess the real value of enterprises. The people establish a scientific evaluation of the performance assessment system is particularly urgent. The EVA indicators (Economic Value Added) created by the Stern Stewart's consulting firm in the U.S. overcome the deficiencies of traditional performance indicators, which deducting the full cost of capital in the calculation including the equity and debt capital costs, reflecting the value created for shareholders in a given period. After EVA indicators are promotion and application of index, the EVA valuation model deriving from traditional valuation models discount and the EVA index was emerged, which assess the enterprise value growth from the perspective of shareholder wealth to become a reality. Produced developed capital markets and mature markets environment in the United States, the theories and methods of the EVA have been widely accepted in the West to obtain a convincing application effect. At present, during China's economy in transition, there are still many problems including no clear business objectives, inefficient use of capital, serious internal control, stock market speculation in general, and so on in the listed companies. EVA concept be applied to China's practice of management and investment decisions can effectively correct these problems. However, EVA is after all "park to products", if a simple copy and mechanical imitation, it will cause serious "acclimatized". Stern Stewart & Chinese companies continued for a short-lived in China that is a lesson. Therefore, how to address China's economic, social environmental characteristics and business development trend, we should enhance the localization research of this performance evaluation methods, improve the EVA valuation model, and explore the application of methods in China, in which is improving our value assessment system, enhance the company's intrinsic value, cultivate the sustainable survival and development of enterprise capabilities, improve decision-making ability of investors, promote the value of management, and promoting to establish the transmission mechanism of the intrinsic value determining the market value in the capital markets has important practical significance.