Study On The Market Value Management Of The Shares Based On The EVA Model Of Y Company

With the equity division reform starting from April 2005,the capital market has achieved the full circulation with healthy development.The benefits of non-circulating shareholders and circulation shareholders achieve consistently.The spread of equity incentive institution also makes the benefits of management teams in listed companies and various shareholders the same.The business target of domestic listed companies shifting from the profit maximization to best benefits of the company.The market value of listed companies has become the most important indicator to represent the actual strength of companies,which not only embodies the historical business capacity and the prospect of the future earnings of the company, but presents the relationship between the company,shareholders and the societies as well.The market value management is the signal based market value of listed companies,which applies the various scientific and standard value business methods to achieve the best value of company. The economic value added(EVA) measures the relationship of company's profitability and capital input.It is the net business profit after tax and weighted average of capital cost(including the cost of equity and debt costs).The market value of listed companies has become the direction of the management theory and practice of listed companies.So the listed company should build the awareness of market value management,learn the methods of market value management,setup market value management system,implement the strategy of market value management.The paper aims at Y company. Through the analysis of the market value management status of Y company,on the basis of traditional financial analysis methods,the historical EVA would be measured.Then through the decomposition of EVA,the corporate indicators,including company's profitability, asset quality, debt risk and business growth conditions and the comparison, could be compared with that of the industry average.As a result,the company asset quality,including accounts receivable turnover and inventory turnover is lower than that of the industry average.After finding out the reason why some indicators are lower than those of the industry average, the paper will put forward the suggestions about how to improve the accounts receivable management and inventory management respectively, in order to improve Y company's market value management ability.