Valuation Of Food Retail Enterprises Based On EVA Method

With China’s economic development,leisure snacks have quietly become the "fourth meal",entering the dining tables of thousands of families.Eating snacks has become an important way of leisure and entertainment to relax.Thanks to China’s innate natural resources,there are many kinds of food retail.With the prosperity of people’s life,food retail industry is becoming an important consumer industry in China.Through the analysis of the food retail industry,this paper finds that the food retail industry has the following characteristics: 1.Younger customer groups.2.Low brand concentration.3.Serious product homogenization.The improvement of urbanization has brought new economic vitality and brought more customers and broader product pool to the food retail industry.With the economic development and technological progress,the speed of growth is fast.Driven by the development of Internet technology,the enterprise value of food retail industry has changed significantly.On the one hand,more smooth sales channels have brought a larger market scale to the whole industry,but on the other hand,lower admission costs have exacerbated the competition in the industry.Enterprises need to comprehensively analyze the sales situation of various channels,so as to adjust their business strategies in time.This paper selects Laiyifen company as a case to provide reference for the development of other enterprises by analyzing Laiyifen company,a traditional food retail enterprise.As the first stock of snacks on the main board,Laiyifen company lost a lot of market share due to its late entry into the Internet sales channel.In the later stage,by increasing the intensity of online investment and expanding stores to maintain the original advantages offline,the company’s cash flow was negative,which is the epitome of the transformation of many companies under the background of the Internet.By using EVA model,this paper calculates the historical value of Laiyifen company from 2016 to 2020,infers the future development of the enterprise according to the historical data,and calculates the expected value of the enterprise with 2020.12.31 as the benchmark date.By calculating the past and future value of Laiyifen company,it fully reflects the applicability of EVA model to food retail enterprises in transition.First,the EVA model can still be used for the enterprises whose economic returns are fluctuating due to the large amount of investment in the early stage.Second,the use of EVA model calculation can compare the value of the enterprise in the past and in the future,and fully understand the development of each stage.Laiyifen company neglects assets and focuses on marketing,which has similar characteristics with Internet enterprises.By learning from the EVA model commonly used in the value evaluation of Internet enterprises,Laiyifen company evaluates the enterprise value,expands the application scope of EVA method,and provides a reference for other asset light industries undergoing transformation under the background of the Internet era.In the valuation results of this paper,the equity value under Laiyifen EVA model is higher than the market value,because the stock price is a response to the immediate profit.Due to the negative impact of the profit in 2020,the stock price is low.With the stability of the sales channel promotion of the enterprise,the enterprise should enjoy a higher valuation.