Evaluation And Analysis Of Enterprise Value Of China 's Real Estate Listed Companies Based On EVA Index

As a new financial index, EVA (Economic Value Added) involves the opportunity cost of capital and modifies the traditional profit index. EVA breaks the Safe Accounting Policy, reduces the truth of enterpriseand, takes more focus on shareholder equity. Since proposed, EVA becomes more and more popular on domestic and international experts and scholars. Evaluation of enterprise value based on EVA introduces EVA index in the field of asset valuation and modifies the tradition income approach which uses net profit or cash flow as the income. Evaluation of enterprise value based on EVA implements the EVA concept, tries to restore the company’s true value and attach importance to the opportunity cost of capital.Firstly, this research expounds EVA and evaluation of enterprise value based on EVA and demonstrates that they can improve the tradition theory. EVA and evaluation of enterprise value are new financial indexes. Secondly, this research calculates and analyses EVA of 121 listed real estate companies in China per year since 2000 to 2013 and describes their EVA history. Thirdly, this research also calculates and analyses the evaluation of enterprise value based on EVA on December 31,2013 of 68 listed real estate companies. Finally, this research chooses the mainstream financial indexs, analyses the influence factors of the evaluation of enterprise value based on EVA, then integrates text and make recommendations.Through the research, we draw the following conclusions:Firstly, EVA index can reflect the true value of companies better than the traditional accounting index, it is a better accounting index; Secondly, Evaluation of enterprise value based on EVA modifies the traditional income approach, it is a derived model. Thirdly, the real estate listed companies of China get a high degree of negative EVA over the years, but show a trend of improvement. Forthly, the evaluation of enterprise value based on EVA of the real estate listed companies of China is at a poor level of performance. Lastly, the most important factors which affect the evaluation of enterprise value based on EVA of the real estate listed companies of China is scale.After that, the main factors are operation capacity, profitability and solvency successively.