A Study On BYD Value Evaluation Based On EVA Model

At present,all countries in the world are vigorously developing clean energy,and China has become the largest crude oil import country in 2017,so the development of new energy industry for China has a very important strategic significance.In recent years,the new energy automobile industry has been strongly supported by the state to promote the transformation and upgrading of traditional automobile enterprises,and the influx of a large amount of capital has also brought the emergence of a large number of emerging enterprises.In this case,the new energy vehicle industry needs a set of scientific,reasonable,and in line with the characteristics of its industry value evaluation model to explore its enterprise value.This paper takes BYD company as an example,evaluates its value based on income method and EVA model,and analyzes the evaluation results.In this paper,by combing the research results of domestic and foreign scholars in the application field of EVA model,the basic research methods and ideas of this paper are determined.When conducting a value evaluation study of BYD,a certain amount of research and analysis was conducted on the development of the new energy vehicle industry and B YD’s new energy vehicle business,laying a foundation for the subsequent value evaluation.In the selection of the value evaluation model,this article sequentially analyzes the applicability of the cost method,market method,income method,and real option method in the traditional value evaluation model.Based on the analysis results,the FCFF model in the income method is used to evaluate BYD.Based on the calculation results,the error value of BYD’s equity value estimated by FCFF model and BYD’s actual equity value is relatively large.Therefore,based on the financial forecast data based on the income method,this article conducted a value evaluation of BYD based on the EVA model.According to the results,the EVA model is more accurate than the FCFF model and explains the company’s value more strongly.This is because BYD,as a high-tech enterprise,has the characteristics of high risk and high investment in the early stage.The use of the FCFF model ignores BYD high The amount of investment that can be generated in the future will not be able to tap the potential value of BYD,which will ultimately underestimate the value of the company.Finally,after conducting a sensitivity analysis on the calculation results of the EVA model,based on the analysis results,some specific suggestions were made on BYD’s measures to enhance the value of the company.The research results of this paper show that EVA model is applicable to such high-tech enterprises as byd.Compared with the traditional value evaluation method,it can more truly show the enterprise’s real ability to create value.It can not only provide a scientific reference for the investment and financing,merger and reorganization,additional stock issuance and other behaviors of China’s new energy automobile enterprises,but also allow enterprise managers to adjust their enterprise strategies based on the calculation results of EVA model and establish relevant systems to further enhance enterprise value.