Evaluation Of Real Estate Enterprise Value Based On EVA

With the rapid development of China's economy and the rapid growth of GDP,the real estate industry has achieved rapid development,led the joint development of the basic building materials industry,water conservancy industry and many other industries,and gradually become China's national economy pillar industries.The current real estate market is not mature enough and stable.On the one hand,the real estate prices are influenced by macroeconomic policies and psychological expectations of investors.There is still a lot of speculation in real estate investment.On the other hand,there is a large demand for real estate development and investment funds.In recent years,under the continuous high pressure of the national macro-control policies,real estate development companies are facing the risk of capital chain fracture and cash flow shortage.At the same time,along with the rapid development of the real estate industry,mergers and acquisitions and reorganizations among real estate companies continue to occur.These factors all affect the fluctuation of real estate prices to a certain extent,which makes the value of real estate development companies deviate from their true values,which is detrimental to the decision-making of mergers and acquisitions and reorganization among large investors and enterprises.Therefore,how to scientifically,reasonably and accurately assess the intrinsic value of real estate companies,thereby providing suggestions for investment decisions of a large number of investors and providing scientific and reasonable value reference opinions for mergers and acquisitions among enterprises in the real estate market,which has become a current value research new hot spot.In recent years,under the influence of the national macro-control policies,banks have continued to shrink their monetary base,making the proportion of self-owned funds in the source of real estate companies continue to rise,and the cost of equity capital has risen.As a result,the impact on the intrinsic value of real estate companies has deepened.It is obviously very necessary to consider the cost of equity capital.However,in evaluating the intrinsic value of real estate companies,traditional financial indicators only consider the cost of debt capital,ignoring the impact of the cost of equity capital on the value of the company,making it impossible to truly reflect the real estate business's operating performance and the company's creation of shareholder value,ability.The maximization of shareholder value is the goal of financial management and even the ultimate goal of the company.Traditional financial metrics cannot meet the requirement of reflecting the wealth value created by the company's management for shareholders.In this context,this paper studies the EVA valuation method and applies it to A real estate companies.The content of this paper includes five chapters.The first chapter mainly introduces the research background,research purpose and research significance,literature review,research methods and content.The second chapter is related to the basic theory of enterprise value assessment,including the concept of corporate value,corporate value assessment,the meaning of the company,the introduction of the income method in the main methods of corporate valuation,and the theory of EVA valuation.The third chapter is the selection of A real estate company value evaluation method and model,including the basic situation of the case company A real estate company,the rationality of the application of the EVA value evaluation model and the prerequisites for the application,and A real estate company's choice of the EVA model;The fourth chapter is mainly about the case analysis of A real estate companies,including the historical EVA calculation of A company,the prediction of A company's future EVA,and the evaluation of the company's value.The fifth chapter mainly analyzes the results of the case evaluation,limitations of the EVA method,and suggestions.