China Railway Construction Enterprise Value Evaluation Research Based On The EVA Modle

On the one hand with increasingly fierce market competition,and the ups and downs of stock market, these business managers and outside investors pay more attention to the value of the enterprise management and assessment; on the other hand, the railway industry in China’s national economy occupies an unusual position, related to the operation of the whole social economy, which is more closely related to daily life. The purpose of business valuation is, through analysis and measure value of the enterprise in the fair market and provide relevant information to find undervalued companies, and then select a valid investment decisions; and also helping managers develop appropriate corporate strategic planning and improve decision-making, by their overall profitability assessment, so as to improve profitability and value creation. With the implementation of the new urbanization and the national strategy of " One Belt And One Road ", it is a golden opportunity for railway engineering and construction companies, and therefore its valuation study is particularly important.The actual cost of capital, especially the cost of equity capital, is not fully congsidered by the traditional enterprise value methods and accounting evaluation index.so that can not objectively reflect the real enterprise value,but enterprise valuation based the economic value model, comprehensively considers the cost of capital in the equity capital cost, through the relevant accounting adjustments, it is possible to accurately measure the value of enterprise, to better serve the business of maximizing shareholder wealth management objectives.The case analysis method is used in this paper, and starting with the introduce of the basic situation of China Railway Construction Co., Ltd. the industry analysis, financial analysis and enterprise valuation theory based on comparative analysis and selection of business valuation methods, this paper point out the advantages of EVA assessment method;Then this paper introduces the EVA enterprise evaluation theory system, to clarify the nature of economic value added EVA calculate EVA model, the relevant accounting item adjustment principles and application of the premise; followed by a detailed analysis by the China Railway Construction Business Valuation Case with EVA evaluation method; finally getting the conclusion of case analysis,China Railway construction enterprise value has been underestimated, which provides a reference for investors effective decision-making, but also for enterprise managers to get some enlightenment on management decisions to enhance the corporate value, and establishing EVA management system for enterprises in the actual situation.