Economic Value Added And Its Application Of Business Valuation

Today rapid development in capital market, acquisitions, restructuring and equity transaction, risk investment Property transactions flourished while enterprise valuation Property Exchange whether realized core prerequisite.In increasingly promoted shareholder value maximization today, based traditional profits indicators enterprise evaluation model has highlighted drawbacks, so based economic value added indicators enterprise value good evaluation model emerged.Its biggest advantage evaluation Enterprise Performance O'clock not only deducted debt capital costs but deducted equity capital cost.Based Economic Value value evaluation model consists economic value added indicators and traditional discount valuation model derivative another enterprises valuation model is from shareholder wealth growth perspective assess enterprise value.In this paper, theoretical analysis and empirical research methods combined.First of all, on the economic value of the basic principles of calculation and adjustments related to accounting principles and economic value added evaluation index system was explained, it is this economic value added valuation model theories.Secondly, the use of comparative analysis method presented business valuation theory and methods commonly used in business valuation:book law, market approach, income approach, option valuation method.Again, the economic value added valuation model assumptions, based on building economic value added valuation model, including the theoretical model and application model.Theoretical model, we introduce the Gordon growth model, two-stage growth model, three-stage growth model; application model, respectively, growth companies, mature businesses, enterprise application development uncertain economic value added valuation model to analyse.Finally, combined with ZTE for empirical analysis, proposed the use of economic value added valuation model to assess the business value of the specific steps that the state through business analysis and development of analysis and forecast economic value added business, then calculate the enterprise value.Through empirical study and theoretical analysis concluded that the economic value added valuation Fang Fageng suitable for high-tech enterprises.In China, the application of economic value added valuation method there are still many bottlenecks, in addition to the limitations of economic value in itself, is more important is the external environmental constraints. However, as gradual improvements in China's capital market, as the economic value added in the further development of our research, I believe that economic value added in China will have broad application prospects.