Valuation Of ADM Company Based On EVA Theory

Along with the quick development of Chinese society and economy, the company's size extend quickly; the merge and acquisition have happened frequently among companies. It is very important things how to evaluate the company's value to acquire the advanced authority in consolidation, but it is very important thing to most of companies. Reconciling the relation between shareholders and professional manager let them have the ability to increasing a lot of company's wealth for shareholders. EVA theory that derived from American Stern Stewart in 1982 came to china in 1993. It brought a new idea and method in value evaluation of company.The thesis was studying the value of ADM, first used the traditional analysis method to analyze the ability of earning profit and remark the necessary explain, and then used the EVA method to evaluate the company's value of ADM. Comparing the result had generated by them and result will highlight the advantage of EVA method..It is studying the EVA value evaluation through the case and this theory crossed the whole thesis. First stating its history, generation and developing and reading volume local and foreign reference books and documents to understand the principle and formula of EVA, its function can be used in professional manager performance appraisal. Prepared the adjustment entry to offset the variance between accounting profit and economic profit and established the new finance report. Acquisition the information of similar industry public companies from CSMAR data, they included the profit ratio and risk quotient to regard as the index of case company. Using the excel office software to calculate the EVA figure of every year. Final using the Zero increasing mould of EVA to evaluate the value of ADM company.