Rresearch On The Selection Of Evaluation Methods Of New Industry Enterprises

In recent years, with the development of the economy, China’s traditional industry is gradually saturated. While there comes a variety of deep-seated, structural contradictions, we have to change the way of development in order to keep the steady growth of the economy. On the basis of this, a breakthrough of new and developing business field emerges as the times require.Since the New Industry is still in the initial period, there are no many domestic researches about it, even the basic theory of the definition is not uniform, this situation is not conducive to the development of New Industry in our country. In view of this, this paper attempts to define the concept of the theory of New Industry.In the background of deep reform of economic system, enterprises in New Industry will develop rapidly in the future. Then, enterprise merger, restructuring mergers and acquisitions equity trading phenomenon will scale in emerging business enterprises. In order to prevent the limit of the development of New Industry, we must be more professional and accurate in the process of enterprises valuation. Considering this, the evaluation method of traditional and modern widely used discounted cash flow method, EVA method and real option method were compared and analyzed. As the result, the EVA method is relatively suitable for evaluating emerging business enterprise in New Industry. At the same time, this paper take Letv, an enterprise in New Industry, as an example, using the EVA method to find the accurate value, and verify the effectiveness of the EVA method after comparing the market value of companies during the period of valuation.This paper attempts to define the theory of the New Industry, followed by a comparative analysis of evaluation methods, and try to find a value evaluation method of the most suitable for the emerging business enterprises. At the end of the research, we use EVA method to show the full assessment process and analysis of the results of the assessment. This paper proved the effectiveness of EVA method in valuing the New Industry, and overcome some technical barriers for the development of new industry enterprises.