Reaserch On Value Assessment Of K12 Education Enterprise Based On EVA

As an important public cause related to the national economy and the people's livelihood,the education industry has long been highly valued by our country.Under the combined effect of the rising income level and the huge population base,the education market presents a huge demand.However,the enterprises in education industry are still in a highly decentralized situation,leading enterprises have a very limited market share,a large number of scattered small enterprises compete for survival space.In recent years,various policies related to education have been issued intensively,symbolizing the higher requirements for the standardization and diversity of the education industry in China.In the short term,education enterprises will go through a period of fluctuation and pay corresponding compliance costs.But in the long term,the living space of some institutions will be squeezed,large-scale integration of the education industry is expected,and market concentration is expected to increase rapidly,the educational enterprises with competitive advantages will have room for further development.K12 education,as the most numerous and longest-lasting stage in the field of school education,occupies a very important position in the education industry.Especially in China's unique high school entrance examination system,K12 education enterprises will have broad prospects for long-term development.However,through to K12 education enterprise value appraisal correlation literature combing may discover,our country at present regarding the education enterprise value appraisal research is few,the research on value analysis of educational enterprises in a certain age segment market is even less.In addition,in the practice of K12 educational enterprise valuation,only the income approach is more appropriate.Therefore,in order to evaluate the accuracy and persuasiveness of the results,it is necessary to probe into the methods from more angles of K12 educational enterprise value evaluation,the EVA model,which has been studied in other industries,has a good theoretical foundation.This paper introduces the market environment of K12 educational enterprises from three aspects: population base,consumer demand and industry competitiveness,referring to the industry data published on the statistics website,and summarized the K12 educational enterprise's characteristic and the value influence factor.Combined with these characteristics and value influencing factors,this paper analyzes the limitations of the traditional enterprise value evaluation methods: the cost method ignores the influence of market position,brand effect,teacher team and the future growth potential of the enterprise,the adjustment index and the adjustment range of the market method are influenced too much by the subjectivity,so the cash flow method is not suitable for the enterprises when the cash flow is negative.After that,I have determined the necessary accounting adjustment items for K12 educational enterprises,and introduced in detail the determination steps and methods of after-tax net operating profit,total capital and weighted average cost of capital.Finally,the case of Longmen Education is selected to verify the EVA model.According to the analysis and comparison of the related results,I think EVA model can get effective evaluation value in K12 educational enterprise valuation.Through the analysis and demonstration of theory and case,this paper draws three conclusions: First,the model of K12 educational enterprise value evaluation based on EVA is referential;The second is that the EVA valuation model has advantages over the traditional enterprise valuation method in the evaluation of K12 educational enterprises,and the third is that the EVA valuation model has stronger operability in the condition of adjusting items,which is helpful to popularize and use.At the end of the paper,we also list the shortcomings and improvement direction of this evaluation,hoping to provide some ideas for the follow-up researchers.