A Study On Enterprise Value Assessment Of S Home Appliance Company Based On EVA

While the novel coronavirus has catalyzed the "home economy",it has also prompted consumers to pay more attention to the concept of health.The market segment of small household appliances with health attributes has risen rapidly in recent years.Using scientific and reasonable evaluation methods to evaluate enterprise value is not only helpful for enterprises to recognize their own value and adjust their development direction,but also an important premise for investors to make investment decisions.Therefore,it is very important to choose the proper evaluation method to evaluate the enterprise value of small household appliance companies.This paper takes S household Appliance Company as the main body of research and the value evaluation of S household Appliance company as the research object.It evaluates the enterprise value of S household Appliance Company based on the literature research method,quantitative analysis method and comparative analysis method.Firstly,it introduces the research background and purpose,research review at home and abroad,main contents and research methods.Secondly,it expounds the related concepts and methods of enterprise value assessment,and discusses the necessity and feasibility of using EVA valuation method.Thirdly,the paper introduces the general situation of the enterprise and analyzes the factors that influence the enterprise value of S household Appliance Company in detail,and evaluates the enterprise value of S household Appliance Company according to its selection and application of EVA two-stage model combined with market correction coefficient.In the estimation process,the enterprise’s 2018-2022 EVA is calculated first,and then the EVA of the high speed growth period and the stable growth period is predicted according to its value.Then the EVA of the forecast period is discounted and summed according to the formula,so as to calculate the enterprise value.By calculating the correction coefficient α,the corrected enterprise value is 40.382 billion yuan,and the difference rate between the market value and the base date is 0.92%.In the calculation of historical EVA,the three-year bank loan rate is taken as its capital cost,the three-year Treasury bond rate is taken as the risk-free interest rate,and the GDP growth rate is the market risk premium.The β value of S household appliances company is obtained from the Guotai ’an database.According to the selected data,the weighted average cost of capital in each historical period of the enterprise is calculated.The weighted average cost of capital in the forecast period is 7.86% after removing the extreme value in the historical period.Finally,the reasons for the undervaluation of S household Appliance company are analyzed,which mainly include unreasonable capital structure,further improvement of profitability,insufficient investment in research and development,and decline of accounts receivable turnover.In view of the above reasons,based on the level of S household appliance company,suggestions are put forward such as optimizing the capital structure,reasonably raising the proportion of debt financing,improving profitability,controlling costs and increasing revenue,increasing R&D investment,controlling sales expenditure,and strengthening accounts receivable management.Based on the investor level,it is suggested that investors increase their investment in S household Appliance company according to the evaluation results and combined with the economic situation and the enterprise’s future development potential.