Value Assessment Of Water Industry Company Based On EVA Analysis Method

Corporate valuation refers to making full use of financial statement information,effectively evaluating cash flow in different periods,and comprehensively evaluating the company profitability,overall value and external environment,etc.according to the evaluation criteria and relevant laws and regulations.Corporate valuation can provide an important basis for investors to make investment decisions correctly.Investors analyze the company existing data through the method of company value evaluation and compare it with the initial forecast value to find the company worth investing in,so as to realize the preservation and appreciation of wealth.As one of the public utilities,the water industry,under the guidance and support of the state,is growing in scale,has broad prospects for development,and has good investment value.However,there is no suitable valuation method for water industry up to now.If the traditional valuation method is chosen blindly,the valuation will be deviated greatly and investors will make wrong decisions.Therefore,it is imperative for investors to choose the right method to evaluate the value of water industry companies.By analyzing the characteristics of the water industry and selecting the representative listed company of the water industry Pioneer Environmental Protection Group as a case study,this paper makes a comparative analysis of the evaluation results and market prices,which enriches the case of water industry value evaluation,and provides effective ideas and methods for investors to evaluate the value of the company,and provides a certain reference for investors to make investment decisions correctly.EffectFirstly,the paper expounds the connotation and evaluation model of corporate value,and analyses the advantages and disadvantages of traditional evaluation methods and EVA methods.Then according to the characteristics of the water industry,the comparative analysis shows that EVA method is more suitable for the evaluation of the industry.Next,through case analysis,the representative company of water industry Pioneer Environmental Protection Group is selected for value evaluation.Through the basic analysis of the venture environmental protection group,using the method of EVA calculation,combined with the company industry characteristics and the company specific situation,the adjustment items are determined,and the EVA data are obtained.Finally,the final value is obtained by weighted average capital cost discount,and compared with the market value.On the basis of EVA model,this paper improves it by combining basic analysis and DuPont analysis with EVA model to evaluate the company value.In addition,when forecasting the future EVA indicators,the forecast criteria of key financial indicators are adjusted in line with the industry and companies.Long term loans,bonds payable and the proportion of non current liabilities due in one year are calculated and analyzed,which makes the prediction of EVA more accurate.