The Study Of Our Listed Real Estate Companies’ EVA Valuation

The pursuit of the goal of the financial management of modern enterprises is the maximization of corporate value. So, how to assess and measure the value of the business has been an important subject what is discussed in the securities industry, investors concern about the important issues, and now, this subject has become the core issue of concern and attention of corporate management authorities. Over the years, the net profit, return on equity rate of traditional accounting profit targets in the evaluation of the intrinsic value of the enterprise occupies a dominant position. With the continuous development and improvement of China’s capital market, the business environment and operational models have been huge changes in the traditional accounting profit targets less and less able to meet the requirements for assessing the intrinsic value of the enterprise, and therefore need to find a way to more scientific and accurate assessment of a new indicator of corporate value.As a pillar industry in China, real estate development on China’s economic growth, employment opportunities and the development of relevant industries have a great leading role, and to increase China’s financial and tax revenues, and improve people’s housing standards, improve the urban the efficient use of space to make a very important contribution. Therefore, the value of the real estate business assessment study is necessary. In recent years, with the increase of the real estate industry, increased competition and national macro-control efforts, the difficulty of financing further increases, the core competitiveness of real estate companies in order to maintain this context, we must continuously improve their intrinsic value. However, in the analysis of the intrinsic value of the valuation of businesses, the traditional financial indicators only consider the cost of debt capital, while ignoring the cost of equity capital, and therefore will not be able to truly reflect the real estate business performance and create value for the enterprise capacity. EVA index as of today’s hottest financial idea, it is different from traditional analysis model to take into account the cost of equity capital and deducted from net income to reflect the genuine added value and the value created for shareholders of the enterprises, which can be more better protection of shareholders’wealth and contribute to the improvement of the core competitiveness of enterprises.but also facilitate the comparison between the same industry, reflecting a new type of corporate values. Therefore, the application of EVA valuation method to the real estate business value assessment is a useful exploration; it can be more truly reflect the value of real estate enterprises so that enterprises can realize the maximum value.Paper on the basis of theoretical research and case studies, using qualitative and quantitative analysis of a combination of methods, starting from the most basic EVA valuation theory, of the EVA content, the theoretical basis and the principle of calculating the EVA index accounting adjustments, focus advantage analysis described the method of calculation of the EVA index with the traditional valuation method comparison studies. China’s real estate industry in which the macroeconomic environment, as well as the typical characteristics of real estate enterprises are described and analyzed, concluded that the use of EVA valuation value assessment of the significance of the real estate business. Then, Poly Real Estate, for example, Poly Real Estate and the company’s overall financial situation, the EVA valuation method calculated the Poly Real Estate2006-2010EVA (economic value added) EVA value of the company. In addition, comparison of profitability, turnover rate, and Poly Real Estate Group’s invested capital and its cost and other aspects of the analysis and discussion, to analyze the Poly Real Estate’s ability to create value. Finally arrive at the conclusion of the case studies; case studies should pay attention to the revelation of the management and evaluation of China’s enterprise applications EVA index value of the business.