Study On The Evaluation For Enterprise Value Based On EVA

EVA is a kind of evaluation method based on financial index, its characteristic is the equity capital is deducted from net income, so it is different from the traditional income approach evaluation, can more really reflect the enterprise value comprehensively.Banks in many countries have introduced value evaluation system, and the successfully applied the EVA, in order to improve the enterprise’s own intrinsic value, the commercial banks in China should learn from foreign successful experience and combining with its practice, the introduction of EVA value management system step by step. Value management can not only help our country commercial bank, as investors and shareholders can get more clear to understand the status of the bank’s management and investment value.One of the purpose of the evaluation value on listed company, is to determine whether the stock price is overvalued to make investment decisions. In the short term, the supply and demand of buyers and sellers determines the stock price, the value of the stock price may be far away from its center, but the market mechanism will make it back in and near the center value,floating up and down. In the long run, the company’s intrinsic value determines the stock price. Based on the Bank of Communications, for example, through its history financial indicators and future forecasting data, calculated the transportation enterprise value of the bank and the price of per share, compared with market price of per share, it is concluded that the bank of communications in the enterprise value is undervalued or overvalued, so they can help investors to make the right investment decisions, and provide basis for managers to manage enterprise value.