| With the development of economic globalization and the deepening of reform and opening up, China’s economy has maintained a high growth trend, and became one of the major world economic leaders. In the meantime, the stock market has a rapid development, playing an increasingly important role in the national economy. The worldwide venture capital has made a rapid progress. Family businesses are the main power of nowadays socio-economic development. As part of the main body of the market economy, regardless of the investors to invest in family business, or the economic behaviors of acquisitions, merger and acquisitions, the details of the true value of the enterprise are essentially to be known. Thereby, the assessment of the value of the family businesses will highlight its essentiality.EVA is a new index in the eighth decade of twenty century. It is used to reflect the value created by the company for shareholders accurately. EVA is equal to net operating profit after tax which have took off the cost of equity capital and debt capital. Its key is that the capital investment has a cost, and the company will create value for shareholders only when corporate earnings is higher than its cost of capital. And the cost of capital includes not only the cost of debt capital but also the cost of equity capital.This paper first introduces some related concepts of family enterprise, the domestic and international EVA Research, EVA basic theory and Feasibility Analysis of EVA valuation of family business. Secondly, the paper introduces the calculation of EVA, the phased EVA enterprise value evaluation model, the advantages and disadvantages of the EVA enterprise value evaluation method. Finally, on the basis of these studies, the process of enterprise value evaluation model of EVA and EVA enterprise valuation method is applied to the valuation of the limited liability company of SANY Group. And summary the of strengths and weaknesses of the EVA valuation mode. |
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