The Research Of Financial Performance Evaluation Model On The Basis Of The Value Of The Enterprise

Scientific and reasonable financial performance evaluation can help enterprises recognize their own problems and find the key factor which helps promote the enterprise value, we can call it "doctor" of enterprise. At present, there are a variety of financial performance evaluation methods; they make a contribution for enterprise performance evaluation. However, there are also many deficiency on them, one of the most important weakness is they can’t reflect the value of the enterprise. With the continuous development of enterprise, value maximization has become its final goal, then those original performance evaluation methods could not evaluate enterprise value well, obviously can’t adapt to the requirements of the modern enterprise performance evaluation.Firstly, this paper makes a deep analysis and study for the present popular financial performance evaluation methods and find out their existing strengths and weaknesses. Secondly, based on the enterprise value theory we propose the financial performance evaluation model on the basis of the value of the enterprise, this model mix financial indexes and non-financial indicators together, and solved the non-financial indexes are difficult to quantify. In addition, the improved model has an innovation in the indexes designing, which adopts a multi-level and diversified index setting concept. Finally, this paper gives a summing up of the improved evaluation method and analyzes its existing limitations in the application.