The Enterprise Value Assessment Of List Power Company Based On EVA Valuation Model

Power listed companies are the representatives in the development of China’selectric power industry and also the basis of China’s economic development. Withmergers and acquisitions, restructuring, equity transactions, venture capital and otherproperty rights exchange have become increasingly frequent, valuation of power listedcompanies is one of the core issues of whether power assets property transactions canrealized. How to determine the enterprise value of these companies has become not onlythe focus of managers, investors and the public, but also the important guarantee forelectricity capital market’s stability and sustainable development.EVA valuation originated in the1990s in the United States, and has been widelyused by business enterprise valuation in various industries and types of performanceappraisal. In China, the SASAC clearly requires the number of central enterprisesimplement EVA assessment has reached more than100, but the application of EVAevaluation model is still in the development stage. This paper attempts to apply EVAtwo-stage valuation model to assess power listed companies value.Through describing the meaning,the theoretical basis and evaluation methods ofbusiness valuation, this article clear the superiority of EVA valuation in the valuation ofpower listed companies. Scientifically defined the characteristics and classification ofpower listed companies, by analyzing the characteristics of power listed companies’enterprise value assessment, select a two-stage EVA valuation model to calculate. Inempirical research, select Datang Power Generation Company’s financial statements in2008-2012as the basis for calculation and analysis, predict2013-2017financialstatements, adjust the corresponding data and calculate annual EVA value, DatangPower’s enterprise value derived according to the selected two-stage evaluation model.Finally, evaluate and judge the results of the assessment. Assessment result indicates,EVA valuation model reasonably evaluate the intrinsic and future potential value of thepower listed companies.It has certain significance for investors’ investing.