The Exploration Of EVA Method

With the rising of emerging concepts such as Internet finance,new retail and other new concepts,the hot spots such as import substitution and consumption upgrade continue to ferment.Enterprises,as the most important carrier of the economy,have no longer even pursued short-term profit as the main goal of the enterprise,focused more on the maximization of the company's value.The direction of the study of the company is gradually beginning to turn from the short-term profit to the future market space,the industry ceiling,the company development bottleneck and so on.The focus of the company value evaluation also becomes the value of the evaluation of the company at a certain stage of development,and based on this to predict the next stage of the enterprise.How many funds are needed for the exhibition,so how to determine a reasonable price for a project and an enterprise at a given time has become the key to the normal development.From another point of view,China's forty year development history is closely linked with the rapid development of China's manufacturing industry in the past few decades.However,in all industries,the household appliance industry has always been positively change led by the management level,no matter from the introduction of personal management,to the introduction of the product line,and to the introduction of the professional manager system.From the above two points,back to the microcosmic perspective,from the perspective of corporate finance,the quality of the enterprise itself is the most direct embodiment of the leadership of the enterprise management.From the original eighteen warriors to the sea to start a business,to the birth of a myriad of five hundred strong American garage culture,the strategic vision of the official management led the enterprise to lead the enterprise brave ice in the right time,only a great enterprise has been achieved.This paper first combs the theoretical research results of the authoritative experts and scholars in the EVA research field,analyzes the latest theoretical results of the method,the similarities and differences of the management performance with the common accounting angle,and the mainstream application fields,and explains the application of the method in our country,and combines with our country at the same time.The accounting standards of enterprises are used to explain the commonly used accounting adjustment matters.Second,the historical evolution,development stage and future development trend of domestic household electrical appliance industry are summarized.Third from the height of management strategy,the only whole industry chain and the whole product line of domestic appliance industry are selected as the leading enterprises of home appliance production-the Midea is the research subject,and the company's business department is reformed,The company's specific strategy,such as employee incentive mechanism,enterprise transformation strategy and merger and acquisition,reexamines the enterprise value from the perspective of management and enterprise development beyond the traditional accounting perspective,adjusts the EVA model,uses the revised model to calculate the results of the corporate value,and compares it in the two level city.The price of the field proves that the intrinsic value of the group value of the Midea is underestimated.The theoretical significance of this study is that no one has considered the combination of corporate strategy and corporate value in the value assessment of enterprises by using EVA method.This paper tries to analyze its financial situation,corporate strategy,and company value creation from this angle.Through the continuous strategic transformation,the company starts from the traditional household appliances to the intelligent manufacturing field,closely follows the overall trend of manufacturing upgrading and consumption upgrading,which has brought about a number of changes to the value evaluation of the company,thus providing a reference for the overall changes brought to the enterprises in other fields of strategic transformation.The innovation point of this paper is to adjust the net profit after tax and the capital cost of the enterprise,according to the particularity of the enterprise in the industry and the clear strategic adjustment made by the enterprise.No one in the existing literature has considered the combination of the enterprise strategy and the company value in the existing literature.In addition,the author further puts forward some thoughts:first,it is not suitable for the high-tech enterprises in the growth period and the small scale innovation enterprises to use the EVA method to evaluate the enterprise value.Because the most important feature of high-tech growth enterprises is that companies are the most important driving force in the company.The characteristics of these companies are often produced before the needs of the products.Before the establishment of a mature product ecosystem,the speculation of the future needs is restricted,which does not satisfy the population of the commodity.The criteria for dividing the position and mature business model.Second,in the application of the EVA valuation process,the corresponding strategic adjustment should reflect the real intention of the enterprise.If the strategic intention is not related to the main business or even violates the business,the behavior should be regarded as the individual behavior of the management level so that the item will not be adjusted.Third,if enterprises choose to carry out the calculation method of economic added value and establish the corresponding incentive mechanism,the use of EVA valuation can bring the advantages of other valuation methods,which can avoid more short-term behavior.The deficiency of this paper is that only the American group is selected as the representative to explore.The analysis of the enterprise strategy is only applicable to the household electrical appliance enterprises with similar degree to the management strategy and development direction,and the lack of a certain universality and universality.Second the adjustment item is subjective.The project adjustment used by the EVA method is mainly based on the profound understanding of the enterprise strategy.It is unavoidable that some important projects are ignored because of the subjectivity,which leads to the deviation of the valuation results.