The Research In Business Valuation Of Tcl Corp.Based On The Valuation Method Of Eva And B/S

Since the business valuation was led into our country, after years of development, a system of evaluation method has formed gradually, that is being suitable for China’s national conditions. The scope of its application is expanding constantly, in the field of application in the investment decision-making provide a basis for the investors’ rational choice of investment objects in security market.TCL Corporation(Hereinafter referred to as:TCL corp.) has been favored by investors, for its high market position and competitive potential. However, in security market, prices tend to deviate from the corporate value.Under such background; this paper intends to evaluate the value of TCL corp. through the appropriate business valuation method, and then judges the investment prospects of TCL corp. in the end.Firstly, this paper based on the analysis of the theory and method of EVA (Economic Value Added) and real options value model, the listing Corporation TCL corp. as the target enterprise, constructs the evaluation model of EVA and real option, and analyses the internal mechanism and the evaluation process. Secondly, a detailed analysis on the main factors affecting the value of TCL corp., including the analysis of macroeconomic environment, the development of the home appliance industry, and TCL corp.’s financial and non-financial factors,to provide the basis for predictive assessment data. Thirdly, Evaluation steps according to McKinsey consulting company launched the evaluation work. The model was applied to the overall evaluation of target enterprise. And the results were conducted a sensitivity analysis. Finally, the assessment results of TCL corp. was analyzed, namely through the TCL corp. investment risk analysis, providing reference for the investment decisions of investors.After the research and analysis, the author thinks, economic value added (EVA) evaluation model considering the cost of debt capital and equity capital, real option is considered the value of future investment flexibility, so the valuation method based on real option and EVA overcomes the limitations of traditional value assessment method, which can measure the real value of a company, can be more objective and comprehensive evaluation of listing Corporation operating performance. Due to the impact on the future value of the company is expected as well as the intrinsic value of the company, the stock price fluctuates. So, through the combined application of EVA and real options, investors can be used as a index of investment decision, thereby more effectively on the investment value analysis.