Research On The Value Evaluation Of Liquor Making Enterprises Based On EVA

Chinese liquor industry has thousands of years history.Liquor culture is traditional culture of Chinese nation.In recent years,liquor industry has grown rapidly,many liquor-making enterprises have gradually developed into an integral part of China's economic market,and more and more attention are drawn to it in the capital market.In above-mentioned background,it is vital for us to evaluate the value of liquor-making enterprises accurately.First of all,this paper introduces the research background and relevant theories of enterprise value evaluation,then compares and analyses EVA evaluation method and common enterprise value evaluation method.Then,after analyzing the current situation of liquor industry and the factors affecting the selection of liquor industry valuation method,it comes to the conclusion that EVA valuation method is the most suitable one for W company in liquor industry.The specific evaluation process is as follows:The first step is to calculate the value of EVA and the capital cost rate of the company in the past five years based on the financial statements of W Company from year 2013 to 2017.Secondly,according to the investigation and research on the development prospects of W Company's operation,based on the financial statements of the previous five years,the respective items of profit statement and balance sheet are predicted accordingly,which supports us to get the EVA value of W Company in the next seven years.Then these values are substituted into the two-stage model of EVA to obtain the valuation data of W company's enterprise value.At the same time,W company is evaluated by free cash flow method.Finally,comparing the valuation results of W company obtained by two valuation methods with the value of W company calculated by the closing price of stock from Dec.01,2017 to Jan.31,2018,it is concluded that EVA enterprise valuation method can accurately evaluate the value of W company in liquor industry.In the process of evaluating the value of W company by using EVA valuation method,the advancement of this valuation method is summarized.