Evaluation Of Environmental Protection Enterprise Value Based On EVA Method

Environmental protection companies began to develop in the 1990 s.The Chinese government has formulated a series of policies to actively guide private capital and foreign capital to participate in the development of environmental protection enterprises,which enables environmental enterprises to develop rapidly.In the process of continuous development,environmental protection enterprises have continuously expanded their scale in order to obtain more economic benefits,resulting in frequent mergers and acquisitions and mergers of environmental protection companies in the New Third Board market.The value assessment of environmental protection enterprises is to better consider the corporate value of environmental protection enterprises and provide value for mergers and acquisitions.The traditional assessment methods have inevitable defects,so as to promote the development of environmental protection enterprises and enrich the assessment methods.Based on the central plains enterprises,this paper studies the environmental protection industry in the absence of government subsidies,the application of EVA law,the ability of environmental protection enterprises to create wealth,to evaluate the value of enterprises.EVA method is developed on the basis of wealth creation.The biggest difference between it and other methods is that it takes into account the capital cost of shareholders’ equity,and at the same time,it can avoid the distortion of capital cost and after-tax net operating profit caused by different accounting treatment methods.The data comes from the China Stock Market Accounting Research database and the annual financial statements of zhongyuan environmental protection enterprises.At the same time,the value of enterprises is evaluated by the income method.By comparing the results of the two methods,it is found that the EVA method is more advantageous to evaluate environmental protection enterprises.In view of the future development of EVA method,three Suggestions are put forward.Consult experts to assess the future business situation of the enterprise;Improve the relevant system of enterprise information disclosure;Consider the impact of non-financial factors on enterprise value.