Research On Market Modification Of EVA Model For Enterprise Value Evaluation

With the rapid development of economy in our country,the capital market is becoming more and more perfect,more and more enterprises promote their development by IPO and M&A.In these economic activities,the enterprise value assessment activities play an important role.On the one hand,the enterprise value evaluation can provide investors basic reference about stock trading;On the other hand,when undertaking mergers and acquisitions,the two sides can through the enterprise value evaluation to determine the price of their own bottom line.The enterprise value evaluation has received extensive attention of investors and corporate decision makers and become more important between academic circles and practice conditions.In enterprise value assessment,there are three methods we can choose:cost approach,income approach and market approach.Each method has a variety of models to be used.Among them,EVA valuation model due to its consideration of the shareholders' value creation and high applicability,become an important choice to us.EVA,the abbreviation of economic value added,is the result about calculation of the residual income after the deduction of enterprise cost.EVA model,however,there are defects,mainly in all kinds of assumptions of the model is too harsh,it is difficult to meet in reality.In order to minimize the error influence factors on the enterprise value evaluation results,this paper considered by introducing a correction parameter under the market method,correction model to build market is perfect.This paper theoretically discusses the feasibility of building a correction model first,then on the basis of theoretical assumptions detailed correction model is constructed.In order to verify the correction model of correction effect,this paper chose the listed company.When choosing target enterprise,this paper considers the characteristics of the target enterprise' industry and the industry business model applicability,finally chose the medicine manufacturing industry as the research,and chose the Fosun medicine as the target companies.This paper first introduces the source of the topic,introduces the current research situation at home and abroad,and then introduces the relevant theory of enterprise value evaluation,and explains the function,characteristics and methods of enterprise value evaluation.EVA model is introduced,and the market correction model is constructed from the shortcomings.Finally,the modified enterprise is selected to verify the modified model,and the explanatory results are given.