Research On Value Evaluation Of Home Appliance Manufacturing Enterprise Based On EVA Model

With the rapid development of China's economy,the economic behavior between enterprises becomes more normal.With the strong support of national policy,the home appliance industry has developed rapidly with the strong support of national policy.Therefor,with the home appliance penetration rate increased and competition continues to intensify,mergers and acquisitions between household electrical appliance manufacturing industry may become increasingly frequent in future.But China's capital market system has yet to be further improved,policy has a greater impact on the stock price,so it can not fully reflect the company's intrinsic value,this situation is not conducive to investors to make right M&A decision.Therefore,how to scientifically and effectively assess the value of home appliance manufacturing enterprises and provide reference for the majority of investors or provide scientific and reasonable advice for mergers and acquisitions of household electrical appliance enterprises has become the current hot spots.In assessing the intrinsic value of the firm,traditional evaluation method only considers the cost of debt capital and ignoring the impact of the cost of equity capital n assessing the intrinsic value of the firm.EVA value assessment method is different from the traditional financial management.It combines the cost of debt and the cost of ownership to the value of the enterprise,focusing on the long-term development of the enterprise and truly reflect the ability of the enterprise to create shareholder wealth and realize its value.Therefore,using the EVA value assessment methods to assess the value for home appliance manufacturing enterprises has a far-reaching impact and practical significance for mergers and acquisitions.This paper uses the combination of basic theory and case analysis,qualitative and quantitative combination of research and analysis methods,combined with the development of home appliances industry,then establish a two-stage model for home appliance manufacturing enterprises.At the same time,this article selects one of the leading manufacturers of home appliance manufacturing enterprises-the United States Group to carry out case analysis and analysis,to provide investors with reference recommendations,more importantly,test the applicability of the model,help in practical applications to increase the value of economic growth(EVA)Theoretical research value.Researching on the enterprise value evaluation of household electrical appliance enterprises can not only provide reference for investors,but also have some guiding significance for the management activities of enterprise managers.