Research On Corporate Value Evaluation Of Listed Companies Based On EVA

With the deepening of economic globalization and the rapid development of capital market,The competition pressure faced by enterprises is increasing day by day,and economic activities between enterprises are becoming more and more frequent.And the smooth implementation of these economic activities is based on enterprise value,It can be seen that accurate evaluation of the value of the enterprise is particularly critical.The traditional enterprise valuation method has been criticized for its shortcomings.Therefore,it is very important to explore a scientific and accurate method of enterprise valuation.Modern enterprises take the maximization of shareholder wealth as the goal,and EVA is a system suitable for business performance appraisal and value management based on this goal.The traditional evaluation method of enterprise value is mostly based on the accounting profit,which not only neglects the cost of equity capital,but also causes the short-term benefit behavior of the enterprise because of the possibility of manipulating the accounting profit,which is not conducive to the long-term development of the enterprise.The enterprise value evaluation method based on EVA overcomes these defects.It provides a new perspective for investors to accurately evaluate the value of the enterprise and the shareholders to measure the management performance of the enterprise manager.It not only considers all the cost of the equity capital and the debt capital,but also exclude the influence of short-term interests and non recurring gains and losses on profit by accounting project adjustment.so as to pay more attention to the long-term development ability and the value creation ability of the enterprise.This paper first studies the relevant literature of enterprise value evaluation theory based on EVA at home and abroad,It is concluded that applying EVA based enterprise valuation method to evaluate enterprise value is effective and feasible.Secondly,this paper makes a comparative study on the common evaluation methods of enterprise value,and mainly introduces the superior method of enterprise value evaluation based on EVA,and the basic principle and the applicable conditions of this method are expounded.Then,the enterprise value evaluation method based on EVA is applied to evaluate the value of the China Shenhua Energy Co.,LTD.as an example.By calculating its historical EVA,the EVA of its high speed growth period and stable growth period is predicted,and the enterprise value evaluation is carried out by the two-stage growth model based on EVA,Among them,the adjustment of accounting project is to adjust according to the reality of China Shenhua and the characteristics of its industry,at the same time,in order to improve the accuracy,the interest rate of long-term loan and short-term loan are taken from the annual financial reports,without the usual benchmark lending rate of The People's Bank of China.Based on this,it is estimated that the enterprise value of China Shenhua is about 868.6 billion yuan in December 31,2017,and the stock price is about 33.98 yuan per share,and the actual share price of this day was 23.17 yuan per share.It is about 31.8% lower than the evaluation price,This shows that the market underestimated the business value of China Shenhua.At the beginning of 2018,the stock price of China Shenhua began to rise continuously,up to 29.43 yuan per share,To some extent,this shows that the market really underestimated the enterprise value of Shenhua.Finally,according to the evaluation results,the significance of investors and enterprise managers is analyzed.It expounds the relevant suggestions for enterprise managers to enhance enterprise value,enhance enterprise value creation ability,and ultimately achieve the goal of maximizing shareholder wealth.At the same time,the development of the capital market on which EVA-based enterprise value evaluation method is widely used in China depends is prospected.