Research On Enterprise Long-term Value Objective Evaluation Method

In recent years,value management,as a kind of value based enterprise management method,has been highly praised.From an accounting point of view,value is the historical cost of each item on the balance sheet;from a financial management perspective,value is the present value of the expected cash flow discounted to a certain discount rate;from the investment point of view,value refers to the discounted value of the future expected interests on the risk discount rate.Spliting enterprise value,we can see the value of business,including the current operating value and future growth value.Currently,the enterprise value assessment methods widely admired can be divided into three categories,namely cost,income and market law.At present,the measurement methods of the enterprise’s value are free cash flow and economic valueadded method.The existing enterprise assessment methods are generally oriented to the objectives during the period,and the more commonly used are accounting profit targets and economic value added(EVA).Since 2012,the SASAC include EVA in the central enterprise operating performance appraisal scope,Enterprises’ management model is also gradually transformed from the profit management into EVA management.Whether it is profit management or EVA management,the pursuit is to maximize the period value,and emphasis on the value of the period.ignoring long-term value is not only the crux of the period assessment,but also the bottleneck of enterprise long-term value objective evaluation method must to break.The core content of this paper is the design of enterprise long-term value objective evaluation method,which combines the long-term evaluation with the period evaluation.The specific assessment and evaluation methods include the following five steps: First of all,forecast the value of current operating value and future growth value,determine the long-term value target,taking the current leadership generally to three years as a term into account,so based on the next three years’ EVA discounted value to determine the current year’s value targets,design the table of long-term value targets;Second,compare the EVA actual value of the longterm value impact factor with the target value.At the end of the first year,the end of the second year and the end of the third year,replace the EVA value of the long-term value target table with EVA actual value,and create the EVA actual value replacement table;Thirdly,analyzing the difference between the actual long-term value and the long-term value goal is caused by quantity difference of predicted EVA changing,or enterprise behavior.The situation of this article discussing is the second,and make the EVA changes table at the end of the third year;Fourthly,as the behavioral factors that affect the long-term value of the enterprise include the behavior that only affects the value of the current period,the behavior that affects the value of the current period and the value of the future period,and the behavior that affects the value of the future period.Analyse EVA difference caused by different enterprise behavior,to find behavior factors that cause the changes in the actual value and target value;Finally,the evaluation report is issued.In this paper,a case study of a power company is selected to design a long-term value-oriented evaluation method,in order to provide reference for other enterprises to promote the long-term value of enterprises.