The Research In Business Valuation Of Dong-E-E-Jiao Based On The Valuation Method Of EVA

Since the reform and opening up,with the establishment and rapid development of China's stock market,the value investment concept based on corporate value discovery has been increasingly favored by investors.The fundamental method of enterprise value discovery is the Economic Value Added valuation method(also known as EVA valuation method)based on the improvement of the traditional cash flow discounting method.This valuation method reflects the ability of enterprise value creation from the perspective of shareholders,and is more in line with the enterprise value assessment for investment purposes.In recent years,with the improvement of people's living standards and the enhancement of health awareness,the Chinese medicine industry has shown a trend of continuous growth.As a well-known Chinese medicine company,Dong-E-E-Jiao has also attracted the attention of many investors.In this paper,the case study method is used to evaluate the enterprise value of Dong-E-E-Jiao by using the EVA valuation method to help the investors find the investment value of the enterprise and make the correct investment decision.This paper first introduces the concept of enterprise value assessment and the commonly used enterprise value assessment methods,and then introduces the relevant theories and methods of EVA enterprise value assessment method,and analyzes the significance of using EVA method to evaluate the value of Dong-E-E-Jiao.Secondly,it analyzes various factors that can influence the value assessment of Dong-E-E-Jiao,including analysis of macroeconomic environment,Chinese medicine industry and enterprise level,and provides basis for future predictions.Thirdly,through the analysis of the operation of Dong-E-E-Jiao in the previous section,combined with the external environment of the enterprise,the EVA valuation model of Dong-E-E-Jiao was established.In the evaluation process,combined with the current development status of the enterprise and the external environment,the future development prospects of the enterprise are predicted,and the future EVA value of the enterprise is calculated.Then,based on the EVA valuation model,the enterprise value of Dong-E-E-Jiao was evaluated.Then the calculated evaluation results are compared with the enterprise market value of Dong-E-E-Jiao at that time,and the evaluation results are analyzed.On this basis,this paper analyzes the risks that Dong-E-E-Jiao may face in the future development process,and combines the previous analysis to provide investors withinvestment advice for Dong-E-E-Jiao.Finally,the paper summarizes the full text and puts forward the inadequacies and prospects of this paper.Through the analysis of this paper,the main conclusions are as follows:(1)The EVA enterprise value assessment method can reflect the true value of the enterprise more than the traditional enterprise value assessment method.(2)In the capital structure of Dong-E-E-Jiao,debt capital is relatively small,mainly equity capital,leading to the leverage of debt can not be fully utilized,managers need to improve the capital structure of the company,so as to create more value for the company.(3)Dong-E-E-Jiao estimates that the calculated value per share is higher than the current share price,and the stock is undervalued by the market,so it currently has investment value and is worthy of investors' proper investment.