Research On Cultural Media Enterprise Valuation

In recent years,China's cultural industries have been developing with sound momentum.Equity trading has become increasingly frequent,including enterprise merger and acquisition integration,and reorganization for IPO.The changes of equity have also stimulated the demand of assets appraisal.Therefore,it is becoming more and more important to precisely assessing value of enterprise.This paper attempts to assess the value of China South Publishing &Media Group by economic value added(EVA)evaluation method.This paper summarized the development history and current status of interna-tional and domestic enterprise value appraisal theories,and the application of these theories.Frequently-used appraisal approaches are also introduced,including income approach,market approach,cost approach,real options approach and EVA approach.This paper discussed the advantages,disadvantages,and applicability of different approaches.It analyzes the traits of value of cultural industries and points out high correlation between these traits and EVA indexes.It is theoretically analyzed and explained that EVA approach is more suitable for the value assessment of cultural and media enterprises.This paper choses China South Publishing & Media Group as the research object,and used EVA approach to appraise the company's EVA value of the next 5 years and the enterprise value at the end of 2015 by collating of its financial data from 2011 to 2015 according to a two-stage model.In the process of appraisal,according to EVA theories,the paper adjusted the company's accounting items properly when calculating the net operating profits after tax and the total invested capital.The adjustment of EVA approach on accounting items is not very complicated and conforms to the principles of understandability,availability and influence.The results conforms to the company's real market value and showed that the paper successfully assesses the value of future expectations and that EVA approach is of strong operability and applicability for appraising values of cultural and media enterprises.Lastly,the paper discusses and analyzes a series of factors that influence the results of the appraisal of EVA approach.