Research On The Evaluationof Bank Of Ningbo Based On EVA

In recent years, with the development of the asset evaluation, more and more people noticed the field, which has become a hot topic. The traditional method has been unable to gain a detailed assess to the value of the enterprise, more and more scholars began to use economic value added(EVA) method for valuation of companies. The bank as a pillar industry, business valuation for which has practical significance. In view of this, the paper selected commercial banks for the study, and selected EVA method to value the commercial banks. Bank of Ningbo, one of China’s commercial banks in the first listed bank, and compared to other local banks, it performs better. So I choose Bank of Ningbo as a typical example to study.Firstly, this paper conducted a review about the theoretical value of the commercial banks, and made a summary of the research conditions for domestic and foreign commercial banks, and then introduced about the particularities of bank evaluation and sheet business and compared the different evaluation methods.After a simple business presentation of bank of Ningbo, this paper analyzes the status of the industry and the competitive advantage of the Bank of Ningbo. The research process through access to large amounts of books information on the meaning and methods described EVA and elaborated on net profit after tax, capital structure and cost of capital for the three commercial banks, which were important.Combined with theoretical models and years of financial statements of bank of Ningbo, the article selected EVA method by selecting the appropriate discount rate and profitability of years later, the article finally come to EVA. EVA plus the invested capital were the final assessment of the companies.