The Analysis Of Investing On CRRC Enterprise Based On EVA Model

Development of China's securities market has become increasingly standardized,and the number of main board listed company close to 3500.More and more small and medium-sized investors into the stock market,investors need to set up the correct investment idea,avoid blindly following the investment.Only by establishing the correct value investment concept,can the securities market in China maintain a sound development.Under the development opportunity of "One Belt And One Road" and China's 13 th five-year plan,CRRC has shouldered great national responsibilities and society,and has developed rapidly.As a central enterprise,whether CRRC is worthy of investment has also become a hot issue for investors.According to the value investment philosophy,when the intrinsic value of an enterprise is greater than the market price,it can increase its stock holdings.Instead,sell the company's stock.Firstly,through theoretical analysis of traditional enterprise value valuation model and EVA model,The traditional model of measuring enterprise value relies more on the existing accounting standards and neglects the cost of equity capital.The economic added value(EVA)model considers the total capital cost of the enterprise.Through the adjustment of some accounting subjects in the calculation process,the enterprise value can be truly reflected and favored by value investors.Based on the characteristics of CRRC and the advantages of EVA model,the application of EVA model can effectively evaluate its intrinsic value.Secondly,based on the macro-economic environment of CRRC,this paper analyzes the development trend and status of CRRC by using financial ratio analysis method.Finally,EVA model was used for empirical analysis.Calculate the historical EVA value of CRRC,And predict the company's EVA value in the next five years.Calculate the intrinsic value of China CRRC at the end of 2017.By comparing with the market value,the investment value of CRRC is finally obtained.In addition to the macro-economic environment of the industry,the innovation point of this paper also combines financial ratio analysis and economic value-added model to predict the value of CRRC enterprises.This comprehensive analysis method is seldom used in China.Hopefully,the results of this study will be helpful for the investors of CRRC,and the methodology of this article will be used as a reference to other firms.