Evaluation Of Tourism Enterprise Value Based On EVA

With the improvement of the national income level,tourism has become a popular leisure way of promoting the quality of life,and tourism has ushered in unprecedented opportunities for development.In recent years,the rapid growth of the tourism market has attracted the inflow of large amounts of capital,and the establishment and reorgnization of tourism companies happened frequently and at a faster rate.In order to guide the orderly development of the tourism industry,it is not only necessary for relevant government departments to carry out regulatory guidelines,but also for all stakeholders to make reasonable assessment of the value of tourism companies and make rational decisions.Faced with the complex capital markets,how to accurately and reasonably evaluate the value of tourism companies and then promote the effective inflow of external capital has become a key issue for corporate managers and external investors.Through literature review,it has been found that free cash flow is the most popular enterprise value evaluation model at present.The main reason is that the theoretical research is perfect and the practice is simple.However,China's tourism industry is in a period of rapid growth.Whether it is its own high cost of equity capital or the uncertainties brought about by high risks and high growth,it is easy to amplify the error brought about by the value assessment of free cash flow.The real option method is a new value assessment method that has emerged in recent years with the rise of the option market.However,due to the fact that the construction of China's option market is still in its development stage,there are still many uncertainties in the selection and calculation of the corresponding indicators,and the practical operation is difficult.Is the economic value added method suitable for assessing the value of tourism enterprises? How to evaluate? There are few documents involved.By method of speculation and case analysis,this paper expounds the current major enterprise value assessment methods,on the basis of which it firstly analyzes the characteristics of the economic value added method and its feasibility and superiority in assessing the value of tourism.Combined with the analysis of the value characteristics of tourism enterprises,this article believes that the economic value added method can reasonably evaluate the value of tourism enterprises.Secondly,based on the characteristics of the tourism enterprises,an evaluation model of the economic value added(EVA)of the tourism enterprises was established and used to evaluate the value of China International Travel Service Corporation Limited.Then compare the assessment results with its actual market value on the Shanghai Stock Exchange on the base day to verify the reasonableness of the economic value added method for assessing the value of tourism enterprises.Finally,we came to the conclusion that "compared with other valuation methods,the method of EVA that takes into account the cost of equity capital is more suitable for value assessment of tourism enterprises",and put forward some suggestions on how to improve the value of tourism companies.The conclusion of the study in this paper enriches the relevant literature of the value evaluation of tourism enterprises,expands the application fields of the economic value added assessment method,and provides a method tool for the managers of tourism enterprise and external investors to accurately and reasonably evaluate the value of the enterprise.