| Along with the development of capital market, the investment environment faced by the investors is becoming more and more complex. The capital market changes into a big casino from a small one. In2010, China’s stock market is not optimistic. By the end of July, China’s stock market has always been slapping down for ten months. At the same time, many enterprises’value heavyweight has declined. On the background of think which is called The Value Investment, how investors to find a more accurate method of assessment to get a effective invest chance is a hot topic in recent years.EVA is created by Stem Stewart Consulting Company. It is the balance of which after-tax operation profit minus the debt and equity capital’s cost, somewhat similar to residual income. But there are some differences between them. When people calculate EVA, they deducting the full cost of capital in the calculation including the equity and debt capital costs, which overcome the deficiencies of traditional performance Indicators. It can present the value created for shareholders in a given period. Enterprise value evaluation is a kind of behavior and process, which is to assess the whole enterprise value, shareholders under all rights value or part of the rights in the date of assets evaluation for the specific goals. There are many method to assess the value of enterprise, such as income method, market method, cost method and options method, etc. Income method is a kind of method be used the most widely that based on expected earnings and the discount of rate. It can be differentiated for dividend discount model cash flow, the entity cash flow discount model. This thesis takes Sany heavy industry Co. LTD for example, using EVA valuation model to assessment this corporation’value. On the foundation of scientific theory, with a reasonable and effective analysis method to evaluate the value of the listed company, we can guide the investors management makes rational investment decisions. |
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