Corporation Valuation Research Based On The Economic Value Added Of YLZ Information Technology Co.Ltd.

New growing number of listed companies increases and capital size scale rapidly expands high-tech companies make up more than 90%. IPO, Merger and Acquisition, Restructuring in the GEM are frequent, especially between the information technology enterprises. As for this, Many scholars, investment Banks, asset appraisal institution, business operators and investors has focused on the important topic of how to appropriately make a valuation of the GEM high-tech company.This paper summarizes the research status of EVA, EVA model for the corporate valuation. The second chapter presents the basic theory of corporate valuation, shows the characteristics and requirements of corporate valuation, and makes an analysis of the cost approach, market comparison approach, income approach to find their weaknesses in application of high and new technology corporate valuation. Then, the second chapter expounds the connotation and advantage of EVA model. In the third chapter, first of all, make a brief introduction of YLZ Information Technology Co.Ltd.and get a knowledge of YLZ from the asset structure, solvency, profitability, operation, in term of the information industry situation and prospects, the third chapter makes a conclusion of core-competitiveness by the SWOT analysis method. Finally after a full analysis of the features of YLZ, constructs a two-stage EVA corporate valuation model.In the fourth chapter, based on the calculation of EVA in the past five years, predicts long growth indicators, then calculating the present value of YLZ is 5,900,401,570 yuan on2014 December 31, deduct the net debt of 4684166.88yuan, based on total shares 430 million, the intrinsic value is 13.71 yuan per share, much higher than The first 20 trading'days stock's closing price of 11.92yuan, thus YLZ stock value is undervalued. In comparison of the cash flow discount model, the two-stage EVA valuation model is 0.97% higher of intrinsic value per share.So,the discount cash flow model(DCF) which is widely used in practice verified that the two-stage EVA valuation model is applicable to high-tech and new information companies.EVA valuation model starting from the accounting adjustment course with a consideration of capitalization of R&D and advertising expense which has promoted the ability to create value in high-tech and new information company. It is suitable for valuation a kind of company which regards intangible assets as the core assets and relies on the innovative technology as one of the crucial value driving factor of the company.In conclusion, the two-stage EVA valuation model has an advantage to value the information technology software company. The two-stage EVA valuation model which is applied in corporate valuation has great significations for company's performance evaluation, promotion the rational investment by providing a reference basis for the investors, and diversification of corporate valuation methods.