Research On Value Evaluation Of Company A Based On Residual Income Method

Nowadays,due to the accelerated development of my country’s social economy and the increasingly perfect capital system,companies are paying more attention to their own value evaluation.So how can we solve and implement the enterprise value assessment problem,which is very thought-provoking.This article starts with the value concept of the enterprise,starts from the traditional methods of revenue,cost,market,etc.,and analyzes the significance of the enterprise value from different angles,so as to understand the criteria and conditions for evaluating the value of the enterprise and the market environment required by the enterprise.Pros and cons,and compare the above method with the residual income assessment model to test the possibility and effectiveness of the residual income method in the Chinese capital market environment.This article is based on the residual income model theory of well-known experts at home and abroad,combined with the relevant characteristics of China’s own capital market financial data,using the DuPont analysis system as a medium,and by improving the residual income model,the model is transformed into a simpler net profit margin and asset turnover Financial indicators such as rate,equity multiplier and operating income have greatly improved the operability and understandability of the model.After improving the model,this paper starts with the most representative securities company A in the western region as the research object,and evaluates the operability of the residual income model through case analysis.After verification of the model,we come to the conclusion that the enterprise value calculated by the residual income model is higher than the book value of the enterprise,which also proves that the equal value of the book value and the enterprise value makes the company value underestimated.For the majority of investors,the undervalued value is exactly the investment goal they should pursue,and they can obtain excess returns from it.Enterprise value assessment can enable enterprise managers to understand the operation status of the enterprise more clearly and clearly,and help the company to develop in a targeted manner under the competitive landscape.This article uses the residual income model as the core to evaluate the value of Company A and guide Company A’s future development and progress.However,the residual income model also has shortcomings.It is hoped that more scholars in the future can further eliminate the influence of subjective factors,focusing on analyzing how to more accurately predict the residual income in the future period,so as to improve the objectivity and accuracy of the residual income model.