Assessment Based On An Enterprise Value Of Eva

In our country, the traditional indexes of the profit, such as EPS,ROE, have been a standard of weighing the performance of listed company all the time. Company administration and supervision authorities also regard these indexes as their primary operation target and motivation assessment criteria. But with the change of social economic condition, these indexes receive extensive criticism day by day. Their main defects is lain in having too many restrictions of revealing financial data to outside, not embracing the enterprise's actual capital cost, apt to leading to the administration and supervision authorities act and effort for expediency and exist space of surplus manipulation. Under the new economic environment, traditional accountancy measure indexes have been outdated. In order to compete efficiently and maximize its value, the company needs to add new measure indexes and financial management means to the old results evaluation system. The concept 'Economic value added' which was brought forward by Stern Stewart &CO. and the analysis methods which follows have caused attention and many issues of the academic circles recently.Economic Value Added is first mentioned by Stern Stewart &CO. of American in 1982.As an appraisal index of enterprise income, it can generally estimate the real profit or the acquired value of the corporation in the basis of considering the cost of capital, then decrease the possibility of using the index of the value increasing and investment yield to make performance value which overrates profit and magnify outstanding achievement of corporation. EVA just scales the aquired interests of corporation whether it is higher or lower than the excepted lowest reward rate of investors. The corporation will create value for the shareholders when EVA is positive, EVA is negative shows that the corporation's prosecution does harm to possessory capital, and it is using the shareholders' capital instead of creating fortune, EVA is zero shows that the corporation's profits only satisfy the excepted rewards of investors, and the wealth of investors is just the same as what it used to be.At present the research on EVA mainly concentrate in two aspects: One is the validity of EVA as an index for accomplishment evaluation; The other is the salary encourage system based on EVA. For my personal interest and study experiences, we won't discuss the validity of EVA in this thesis but just assume EVA is the best index to explain company value, and want to develop a system which can be used for analyzing and guiding the company to increase its value. At the meantime, EVA is still fresh things in our country, most investors and listed company's administration and supervision authorities are very indifferent to the cost of equity capital theories now. Up till now, in china, there is no monograph and thesis which appraise concrete listed company with EVA theory. This article hopes to break through to some extend in this respect. Try to use instant analysis to probe into the application of EVA theory in value assessment to listed company in china.The text mainly adopts the method which associates criterion study with case study to discuss the correlative problems about the establishment and the application of EVA evaluation former. First, the text introduces the study background, correlated theory and so on. Then it finds out the particular advantage of the evaluation of the enterprise value of EVA. For example, it can really reflect the created value by enterprise, try to eliminate influence of accountant distortion, correlate the wealth of capital stock with the enterprise decision-making and so on. In the basis above, the text analyze the applied actuality of EVA in our country and give a study of the case of Qingdao Haier stock Co. Ltd. Finally, the text discusses the problems which the enterprises of our country should attend to when they use the EVA index in practical application.The characteristics of this thesis lie in to display all the valuation process of Qingdao Haier stock Co. Ltd in detail, and study of this aspect is relatively little in the domestic. The purpose lies in inquiry into the concrete calculation for investors.