Research On Value Assessment Of The Real Estate Enterprises Based On EVA Model

The real estate industry as one of the pioneer industry of national economy, has great pull effect on China’s economic growth and the development of related industries. The development of the industry attracts a wide attention. In recent years, the country strengthening macroeconomic regulation and rising prices of raw materials, such as land, make the real estate enterprises in the increasingly fierce competition, which make enterprises list, merger, finance and other trading activities frequently, therefore, objective and reasonable assessment of the real estate value evaluation is more and more important. Because of belonging to the capital-intensive business, the real estate industry prefer to scale development and equity financing, while the value of traditional evaluation method ignoring the equity capital cost can’t reflect its performance and value creation ability. EVA valuation model considers all of cost, reducing the influence of the distortion of accounting information for the enterprise value. Therefore, this article use the EVA value evaluation method of real estate enterprise value for research.Firstly, the article introduces to the commonly used method of enterprise value evaluation and the EVA theory and model, then combine with the characteristics of the real estate industry, analyze the applicability of the evaluation method. Through comparative analysis find EVA value evaluation method having an advantage in the real estate valuation. Then the article use this model for real estate enterprises value assessment, carrying a sensitivity analysis to the discount rate. Finally, the article analyzes the reason appraisal value deviate from stock price and the stock future development, verifing the effectiveness of EVA in real estate valuation and the need for model modification。This article analysis the applicability of mature enterprise value evaluation methods in the the real estate industry and applies the three phase of EVA valuation model, enriching the theory of EVA enterprise value evaluation research. Through the study,the article find that EVA index and net profit exists a big difference. Based on the interests of shareholders, EVA value evaluation method show the enterprise asset appreciation ability and creativity. it is important theoretical and practical significance for managers and investors in the investment decision-making.