Liaoning Cheng Investment Value Of The Eva-based Analysis

There are many analytic methods to evaluate a business enterprise. It has widely adopted that the end target of the listed companies is Shareholder Value Maximization. The indexes that measure the performance of the enterprises must be reflect the value that created by the shareholders. The annually value which created by companies to the shareholders is the surplus that revenues deduct all costs. To proceed the investment value of the listed companies with the EVA theory compare with Price-earnings ratio and Dividends- discounts model of the traditional profits index can accurately reflect the true value of the companies. This paper quantify the EVA of the enterprises with Math method, and reason out, demonstrate the relation of EVA and Enterprises Value, Market Price. We apply the method of EVA to analyze theinvestment value of a trade company-Liaoning Chengda Public Listed Company(brief name Liaoning Chengda, code 600739) on the stock exchange of Shanghai. This paper combines the foundational research, normal research with the quantity analysis together. It suggests the stock investors should to abandon the thinking of speculating, and set up the rational investment principle, adopt the strategy of value investment. The investors should regard the EVA of the listed companies as the point of departure, value the capital cost of the business enterprise, value the added value in investment of stock. It is helpful to the other investors that the applied model and analytic method which were set up by the author.