Research On Value Assessment Of The Real Estate Enterprises Based On EVA

The goal of modern financial management is to maximize enterprise value, real estate industry plays a very important position in our national economy, so the valuation of real estate enterprises is necessary. Competition in the industry is growing, financing threshold gradually increase and the survival of the fittest speeds up, in order to remain competitive, enterprises must continually improve their own property value. In the future, only the enterprises which can create value have a foothold. In addition, the investment cost of real estate is high, the proportion of own funds rise continually, so the real estate business must focus on the use of the cost of equity capital. But the traditional financial indicators do not consider the use of the cost of equity capital, they can not truly reflect the real estate business really create value or not. The EVA target break the traditional management philosophy, it considers that to use equity capital also need to pay price, it is able to judge whether an enterprise is to create value or destroy value and protect shareholder wealth, avoid blind expansion of business, help enterprises to improve core competitiveness, and facilitate comparisons between the same industry. Therefore, to use EVA index to assess the value of the real estate business is conducive to healthy development.In the rapid development stage of the industry, real estate development company emphasis on large-scale development, stress on "bigger", focus on profit growth, there are some questions such as administrative costs is high and ignored of cost shares, efficiency of the capital is low. In order to help real estate companies realize that using equity capital also need to pay a price, prevent real estate enterprises expanse blindly, and establish management concepts of creating value for shareholders.This thesis mainly adopts comparative analysis method and the combination of theory and practice, starting with the basic theory of EVA, explained the meaning of EVA, the ideological sources, calculation and the major adjustments of EVA, and EVA was decomposed to identify the value drivers according to the formula of the EVA, analysis of the sensitivity of various factors, propose ways to improve EVA describes the application of EVA at home and abroad. Then, explained the important economic status of the real estate industry, industry characteristics, phylogeny and development prospects of the industry. Subsequently, combine the characteristics of real estate enterprises, three commonly used methods of business valuation are compared, including discounted cash flow method, the relative value method and the EVA valuation method, came to the conclusion that EVA evaluation method is more suitable for assessing the value of the real estate business. Then take Vanke as an example, this paper analysis of Vanke's operations and industry competitiveness, use EVA valuation method to assess the value of Vanke, assess of the value of the assessment results, and proposed suggestions to improve the value of Vanke. Finally, the paper is summarized.