The Research On Evaluation Of China Fine Chemical Industry Enterprise

In recent years,a large number of investors emerged in and out of China with the increasing activity of China capital market.More and more enterprise mergers & acquisitions cases in various industries are emerging,so is the chemical industry.Under the background of China industrial structure deep adjustment,China traditional petrochemical industry is developed to refinement with high technology and high added value through technical innovation and industrial merger & acquisition.And more and more fine chemical enterprises are listed in and out of China.More and more investors are attracted by the fine chemical enterprises,especially that produce new type of chemical materials and specialty chemicals.Whether for the stock investment or the merger & acquisition of enterprises,it is the key problem to know the enterprise intrinsic value.Under the new situation,the chemical industry is developed from traditional extensive form to refinement step by step and it presents a new characteristic.Therefore,how to accurately estimate the new fine chemical enterprises and select the appropriate investment target is a common concern of stock investors and enterprise managers.This paper focused on the evaluation of fine chemical enterprises.Firstly,it introduced all evaluation approach which including EVA approach in details,such as their advantages,disadvantages and application.Secondly,the paper introduced the current status of China whole chemical industry and the characteristic of new fine chemical industry which is developed in recent years.By comparing the different evaluation approaches and considering the characteristics of fine chemical industry,this paper argued that EVA evaluation approach had applicability and superiority for fine chemical industry enterprise and it was verified by the reference cases.We selected two sample enterprises in the hot plate of fine chemical industry and evaluated the two enterprises by using EVA evaluation model.And then we conducted the corresponding sensitivity analysis for the evaluation results.In addition,we added market approach to evaluate the two enterprises and verify the above results.Finally,we concluded that the results of EVA approach were not very different from that of market approach,and both results were equivalent to the market value of the two enterprises.So,EVA evaluation approach for fine chemical enterprise is proved to be applicable and accurate.Moreover,because the shareholder value maximization is taken into account in the EVA valuation approach,it can reflect the real intrinsic value of enterprise.So,EVA evaluation approach is more practical in enterprise.By researching the theoretical and analyze the case,the paper argues that EVA evaluation model can be applied to fine chemical industry which with high technical characteristic.It can be a reference for stock investors,and also a reference for evaluation of similar enterprise in mergers & acquisitions.