| In a market economy, the company is also a commodity which can be traded on themarket and the basic objective of management is just to maximize enterprise value.Therefore, it is vital important to evaluate the enterprise value for investors andoperators. The financial report, which is supposed to be regularly published for listedcompanies, give a true and fair view of the financial position and its financialperformance of the Company. In Chinese securities market, Price Earning Ratio, Priceto Book Ratio, Per-share earnings and other indicators are regarded as measurementindexes of the operating results of a listed company and the business goals andmotivation of a manger. However, with the growth of socio-economic conditions, theseindicators could not reflect the company true value any more. Therefore, the companymust seek new performance indicators and financial methods.This paper will assess the value of listed companies based on based on financialratio analysis and economic value added(EVA) model through theoretical analysis andempirical research by studying the financial reports. This paper, firstly, will describe thepurpose and significance of this topic and introduce the research status, content andresearch methods. And then, we will prove EVA model has its own advantages invaluing a company by comparing with other models. Thirdly, the development of Chinalandscape of the industry will be described. ORIENT LANDSCAPE CO., LTD. co.ltdwill be introduced focusing on its evaluation, development and the core competitiveness.In the final part, the value of ORIENT LANDSCAPE CO., LTD. co.ltd will be studiedby applying the EVA model and analyzing the financial ratio based on financial reports.The innovation point of this paper is the whole process of the use of financial ratioanalysis and the evaluation of ORIENT LANDSCAPE CO., LTD. co.ltd by EVA modelwhich is applied rarely in Chinese academic circles. This paper aims to provide a usefulreference for investors and other listed companies. |
