Different Analysis On Enterprise Value Evaluation Of Amazon-Based On DCF And EVA

The Enterprise Value Evaluation is the product of the market economy;it develops along with the growth of the enterprise,the listing of the company,the enterprise financing,the merger and reorganization and so on.With the gradual improvement of China's market economy,how could we do well in the Evaluation of E-commerce Enterprises,which have an important impact on the future development of E-commerce industry and enterprises.In recent years,E-commerce industry have invest a large of research and development expenditure,but the different value assessment method have the different ways on the processing of research and development expenditure,is there a big difference on the different Values of the Evaluation methods,is the traditional Evaluation method is suitable for assessment of the value of modern E-commerce enterprises,is there the need for improvement on the difference,analysis this article selects DCF and EVA these two kinds of methods for Amazon to assess enterprise value based on the average valuation date of December 31,2016.The evaluation data mainly from Amazon in recent years the annual report,through the calculation of two methods were compared and analyzed EVA closer to the market value of companies than DCF,under the DCF Amazon enterprise value of $356 billion 11 million,and the average market value of $373 billion 200 million was-4.83%;in theenterprise under EVA law for $375 billion 97 million;and the average market capitalization of $373 billion 200 million is 0.51%.Therefore,the EVA method has some advantages than other methods on the Enterprise Value Evaluation of E-commerce.Especially in recent years,the E-commerce Enterprises spending a high level of research and development expenditure,so EVA has a wider applicability.In view of the difference of the results above the two methods between the respective analysis of the free cash flow,and then through the sensitivity analysis comparison of two methods of data selection data results and shows that : Research and development expenditure on the Enterprise Value is more sensitive on the DCF method than the EVA method;based on the above analysis the influence of research and development expenditure is vital on Enterprise Value.Through the above analysis of the differences between Amazon and combined with the enterprise's own status we put forward some suggestions for improvement of the free cash flow of enterprise value assessment process,and so on the Electronic Commerce industries.