EVA-based Evaluation Of The Value Of Oriental Garden Enterprises

With the continuous improvement of China’s garden industry chain,the garden industry has also entered a new historical period of rapid development.Investors attach great importance to the objective and accurate assessment of corporate value,and management has paid extensive attention to the evaluation of value.At this stage,the country’s stock market is in an immature state.Many investors cannot focus on the long-term perspective to assess the value of the company,resulting in the phenomenon that the stock price and value are not equal or incompatible.In the long run,investors and managers have adopted the past valuation method,and the shortcomings are obvious.The EVA value model makes up for the disadvantages of the past value appraisal methods when assessing the enterprise value of the landscaping industry,fully considers the equity capital of the enterprise,and attaches great importance to debt capital,etc.,and avoids the lack of objective accuracy of accounting information which have strong influence for the company,strengthen the goal of maximizing the interests of shareholders.This paper firstly discusses the necessity of exploring suitable value evaluation methods for garden enterprises based on the development of the garden industry.The body part introduces the concept of enterprise value assessment and several traditional value evaluation methods and their scope of application.It highlights the EVA evaluation model and its applicability.Then take the Oriental Garden as an example to conduct a case study of value assessment.Through the vertical comparison of the profitability,solvency,operational capability and development capability of the Oriental Garden,and horizontal comparison with the related enterprises in the same industry,it fully reflects the development prospects of the Oriental Garden Enterprise.Subsequently,the EVA valuation method was used to evaluate the value of the oriental garden.Finally,the validity and applicability of the EVA method are verified by the P/E ratio method.Theresults of the value evaluation are analyzed,and the methods are insufficient to provide some reference for investors and enterprise managers.The EVA value evaluation model is constructed,and its indicators and discounting theory are organically combined,so that the inadequacies of the previous evaluation model are fully overcome,and the current value evaluation method has deep theoretical and practical significance.