Research On Value Assessment Of NEEQ Listed Enterprise Based On EVA

In today’s highly knowledge-driven economy, capital market has an increasingly strong interactive relationship with technological innovation. As the most important, the most active and the most promising market entity, the growing small and medium-sized enterprises and High and New Technology Enterprise (HNTE) which are listed in NEEQ, are playing a driving role in the economic development. Recently, with the gradually improvement of rules and institutions, NEEQ’s financing function is appearing and the stocks-exchange activities are increasingly active. The market size and the quality of listed enterprises of NEEQ are also improving rapidly. The NEEQ market influence and coverage is outstandingly expanding, which attracts the attention of a large number of investors.As a rational investor, more emphasis should be on laid on a company’s potential to crate long period value. It is wise to evaluate a company’s whole value reasonably with an accurate method, so as to find companies that are underestimated to invest within the limited market. From the company managers’point of view, mastering the use of a scientific value-evaluation method is also greatly meaningful. In order to pursue the survival and development of the company, the most practical goal that the managers ought to achieve is to increase the intrinsic value of the enterprise and maximize stockholder’s wealth.Traditional evaluation methods are inapplicable in the assessment of NEEQ-listed enterprises, whereas EVA evaluation method is operable, reasonable and scientific in comparison. The most typical character of EVA evaluation method is that the cost of equity capital is taken into consideration and at the same time some accounting subjects are adjusted, thus, the imperfection of the traditional evaluation methods is overcome and the value which is created by the company within a certain period of time is reflected.This paper elaborates the theoretical framework of EVA evaluation method and compares it with traditional evaluation methods, and then, conducts a case study to check its effectiveness. The main research contents are as follows:The first chapter is introduction. A brief introduction about the background, significance, research contents and research method is given. The second chapter is literature review. Overseas and domestic research status of EVA is reviewed, and a summary comment is made, based on which, the innovation of this paper is presented. The third chapter is the comparison of five enterprise valuation methods. Firstly, the author analyzes the features the NEEQ-listed enterprises. And then, five enterprise valuation methods are introduced and their limitation is pointed out. At last, in comparison with traditional evaluation methods, the advantage and disadvantage of EVA evaluation method is summarized. The fourth chapter is the establishment of EVA valuation model. The items that should be adjusted, the way to designate coefficients and the counting process are detailed introduced. And the classification of EVA valuation model is described and the two-stage model is chosen for NEEQ-listed enterprises. The fifth chapter is the practical application of EVA valuation model. This chapter is a case study based on the theory that is introduced in chapter four. The last chapter is conclusion and outlook. Based on the result of the case study a conclusion is made. The limitation of this paper and the research prospects are also shown at last.