Study On Evaluation Methods Of Construction Enterprise

Enterprise evaluation is an economic appraisal tool,which is significant for investors to analyze enterprise value,make correct capital operation decision and so on.Construction industry is an important pillar of our national economy.The excellent resource of China construction has long been in large state-owned enterprises.With the deepening of China property rights reform in construction enterprises,acquisition,restructuring and venture investment among construction enterprises will become more frequent.Value evaluation will play an increasingly important role in this process.However,because evaluation theory research started later in china,and some non market limited factors exist in evaluation process,appraisal institution incline to choose costing approach with little thought given particular industry character.The situation is the same with construction enterprises.At present,no matter in academic or practical field,the study level and papers are all limited,so this paper has a great realistic meaning.This paper use standard research and case study approach.Firstly,it analyzes the value character of construction companies,then summarizes the value-driven factors and quantized them with financial index.Combined with these value features,the paper compared the adaptability of existed appraisal methods for construction enterprises systematically.Secondly, on the above analysis basis,the paper choose residue income model as the evaluation model for construction enterprise,then improved the model by DU POND analysis system.Finally, drawing the final conclusion by using the improved residue income model and discounted cash flow model to evaluate the target company respectively.The conclusion is that in contrasted with costing method and discounted cash flow approach,using improved residue income model to evaluate construction enterprises can achieve rational appraisal result.Meanwhile,the main value-driven factors analyzed in the thesis are very useful to the administrative personnel.