Beverage Industry EVA Evaluation And Stock Price Correlation Observation

As an investor, no matter when it is in the history or which development stage, the most effective investment is always value investing. This is in line with logical thinking and theoretical instruction. This is what we called the real rational investment. As a mature investor, we need to judge the corporate value and investment profitability. The core of the value investing is to evaluate the intrinsic value of the corporate. If we have some ways to evaluate this kind of value more accurately and compare this value with the market value, we can make decision on final investment more efficiency. From this part of view, corporate valuation is important for further decision making.This thesis analyzed the Economic Value Added (EVA) model. We consider the capital cost and deducted from net profit. This improves the flaw of traditional profit recognition. To some extent, it reflects the shareholder value created in certain period more entirely. Also, it requires the management team pay more attention to the investment cost and shareholder value. So far, EVA model has become an important analysis tool world widely.The thesis will also observe on an US listing company and China A stock listing companys of beverage industry to test the EVA model. Also, the thesis will observe the relation between EVA result and stock price. Finally, conclusion will be drawn for the application in China market.