Enterprise Value Assessment Of Iron And Steel Enterprises Based On Improved EVA Method

The steel industry has always been one of the most important basic industries in my country,and the development of this industry directly drives the development of China’s economy and society.In the past,China’s steel industry has been in the predicament of oversupply of low-quality goods and insufficient supply of high-quality goods.In recent years,with the implementation of relevant policies and measures such as "cutting production capacity" and "green production capacity",China’s steel industry has ushered in new development opportunities and entered a critical period of transformation and upgrading.However,in 2020,the steel sector in the stock market has not yet shown a corresponding upward trend,and the overall stock price is relatively low,which has led to a serious underestimation of the market value of steel companies.Today,how to reasonably and efficiently evaluate the real value of a company and maximize investment returns has become a focus that affects investors’ decisionmaking.At present,traditional evaluation methods lack research in measuring the intrinsic value of enterprises.The enterprise value evaluation scheme based on the perspective of economic added value provides a reference for people to correctly measure and evaluate the intrinsic value of enterprises.The thesis roughly includes the following four parts: The first part introduces the research background and significance of the enterprise value of China’s steel industry,and sorts out the related theoretical research of the Economic Value Added(EVA)model.The second part analyzes the general situation,characteristics,and influencing factors of the steel industry.At the same time,it expounds on the theoretical connotation,advantages,and disadvantages of the three traditional enterprise valuation methods and real options method.The third part explains the theoretical connotation and application of the EVA method.In the process of researching the traditional EVA model,it is found that it is difficult to predict the profit growth rate of the enterprise,and the accuracy of the discount rate needs to be In order to solve problems such as improvement,based on the cyclical characteristics of the steel industry and the characteristics of HBIS,the EVA method is improved by using the exit multiple methods,the equity-liability ratio of the enterprise is determined according to the financial structure,and the weighted average cost of the capital model is used to calculate the company.The comprehensive discount rate of the overall value makes the valuation result closer to reality.The fourth part explains the basic business operation of HBIS,and analyzes the financial strength of HBIS from three aspects of profitability,operating ability and solvency,and then uses the improved EVA method to evaluate HBIS.This provides a case for the empirical study of the EVA valuation model,and the evaluation results show that the improved EVA method has better applicability.The innovation of the thesis is reflected in the following two aspects,one is that the economic cycle theory is introduced into the EVA valuation model,and the other is that the two-stage model of the EVA valuation model is improved by using the exit multiple methods.