Reaserch On Value Assessment Of NEEQ Listed Education Enterprise Based On EVA

The global economy has been in a long recovery time since the economic meltdown struck in 2008.Even now,the global economy still suffers a soft growth.The Chinese economy faces severe challenges for the sake of high downward pressure and industrial upgrading demand.While Chinese government takes various measures to promote economic development,the role of capital market cannot be ignored in the development of national economy and the NEEQ(National Equities Exchange and Quotations)is an important part of the construction of multi-level capital market in ChinaThe rapid development of the NEEQ on one hand is good to reduce the difficulty of enterprise financing and optimize the allocation of resources,on the other hand is good for the enterprise standard management which brings new vigor into enterprises.But the public bidding mechanism is imperfect in the NEEQ,thus a reasonable value evaluation method is important.The economy faces the downward pressure in the China's New Normal.Job hunters will seek training services to enhance their competitiveness in the situation that the competition is intense and the employment pressure is high,which leads to the high demand of training services and the great development potentiality of education enterprises.Many education enterprises of high quality get listed in the NEEQ in China,since it is very hard for them to get listed on the main-board and the recognition of investors overseas is low.These education enterprises are in a dominant position in the segment market and greatly worthy of investment.This paper took the research for evaluation of education enterprises in the NEEQ based on this background.EVA method was chose after the analysis of education enterprises' characteristics and the comparison of evaluation methods,then an EVA evaluation model was established.This paper selected Huatu as an example to verify the model through the calculation and analysis of the value of Huatu.Firstly,this paper introduced the research background,significance,overseas and domestic literature review,research approach,research method and the innovation and deficiency of this paper.Secondly,the education enterprises in the NEEQ were analyzed,mostly the development situation and features.Thirdly,the superiority and feasibility of the EVA evaluation model in education enterprises evaluation were pointed out through the comparison of several enterprise evaluation methods.The future changes of the enterprise is ignored in the cost approach.The future cash flow is hard to predict in the discounted cash flow method which is also inappropriate when the cash flow is negative.The market approach relies greatly on the education enterprises for reference which are hard to find in the NEEQ.Option pricing method is complex and obscure.Thus EVA evaluation method is fit for the education enterprises which are of high potential and high proportion of equity capital since this method takes the cost of equity capital into consideration.Fourthly,the two-phase evaluation model was chosen in the evaluation based on the development of the enterprises.In addition,this part analyzed the items should be adjusted during calculation and then some items were chosen based on the degree of significance,pertinence and availability of information,such as research and development cost,propaganda cost,all kinds of reserves.This paper took Huatu as an example to verify the EVA evaluation model.The value of Huatu in 2015 was figured out to compare with the value calculated based on the equity trading.The value of Huatu was underestimated in the equity trading in2015 since it is far below the result of EVA model which is reasonable according to the information of the equity trading in 2016.It can be found that EVA method is valid in the evaluation of education enterprises in the NEEQ since it is useful for corporate value discovery and valuable information offering for investors to make decisions.