Research Of Tuoxing Company Valuating Based On Economic Value Added

Enterprise Valuation is a process of evaluating the value of a certain enterprise. It can help the management to make decision effectively, and also help investors to make the right investment decision. It is vitally important to choose a appropriate value evaluation method in the process of valuing a enterprise.EVA is the balance of the adjusted net operating profit minus the total capital cost; EVA emphasizes the ability of creating enterprise value, paying attention to the long-term development of enterprises, and measures the true value if or not meeting the investors'expectation. With the enterprise value assessment methods, EVA value evaluation model adjusts net operating profit from the aspects such as non-operating income, asset impairment provision, containing the equity capital cost which the traditional evaluation methods often ignore, accurately reflecting the value creation and the change of shareholder value. EVA also focusing on enterprise growth and profitability, and EVA is suitable for the value assessment of the developing high-tech enterprises.In this paper, we use the EVA model to evaluate the enterprise value of the Tuoxing Company. At first, this paper expounds the connotation of enterprise value assessment and introduces the basic method of value evaluation. Then it summarizes the domestic and foreign research results of EVA value evaluation theory. On the basis of theoretical research, combining with the characteristics of the Tuoxing Company enterprise, it chooses EVA method to evaluate its value. Under the environment of the enterprise and the analysis of the current situation of the development of enterprise itself, on the basis of historical financial data, it forecasts the key data to get the future EVA value, and gets the value of the Tuoxing Company with the future EVA discount. Finally, this paper analyses the evaluation results, and put forward the corresponding countermeasures for the company.Based on the application of EVA valuation method, the evaluation results reflect the value of the Tuoxing Company which reflects that the EVA model is suitable for the high-tech enterprises'value assessment, it can provide reference for the same type of enterprise value assessment.