EVA And Valuation Of Listed Corporations

In this thesis, the methodology of combining theoretical and empirical analysis is adopted to study how the analytical tool of Economic Value Added (EVA) can be applied to valuation of enterprises. The thesis includes the following contents.In the first chapter, the concept of EVA is firstly introduced, and then related accounting regulations and calculation process of EVA are discussed. In the second chapter, "EVA and creating company value", the relationship between EVA and MVA (Market Value Added) is analyzed, and the main results from evaluating the country's listed companies through EVA method are introduced. Additionally, the approaches about how EVA can creat value are discussed.In the third chapter ,"analysis about EVA appraised price model", it is demonstrated that the valuation models EVA,DCFE,NPV are equavalent. Moreover, the application aspects of EVA-based valuation model are discussed in detail.In the fourth chapter ,"company value", the traditional valuation methods are briefly introduced and the related limitations are presented. The advantages and the applicability of EVA-based valuation model are then analyzed.The fifth chapter deals with the application of the proposed model. Specifically, Zhongxing Communication Corp. is through EVA-based valuation model. Furthermore, eight companies in iron and steel industral are chosen and their market values are evaluated.