Enterprise Valuation Of Poly Development Based On EVA Model

In recent years,with the deepening of the real estate regulation policy and the increasing pressure on the economy,the development speed of the real estate industry has slowed down,which has the trends such as the increasing concentration of advantageous housing companies,the re-segmentation of market share,and the search for new momentum for development.The competition in the real estate market is increasingly fierce,and the demand for transformation and upgrading of real estate companies is increasingly strong.As an important reference index for the transformation and upgrading of companies and the embodiment of core competitiveness,company value has attracted more attention from the management of real estate companies,and the valuation is even more important.With the tightening of bank credit policies,it is increasingly difficult for real estate companies to raise debts.Therefore,it is more necessary to pay attention to the improvement of the efficiency of the use of their own capital.However,the traditional valuation method does not pay enough attention to the company value brought by equity capital,which makes it difficult to improve the rate of return on equity capital.At the same time,due to the limitation of accounting profit rules,it is easy for short-sighted operation.The EVA(Economic Value Added)model,which focuses on the creation of company value,fully considers the cost of equity and can better reflect the ability of shareholders to create value.At the same time,the accounting item adjustment can help the management of real estate companies get rid of the shackles of accounting profits and reduce short-sighted management behavior.Therefore,EVA model can more reasonably evaluate and enhance the value of real estate companies.In September 2018,Poly Real Estate announced that it was officially upgraded to Poly Development.As a representative company in the real estate industry,Poly Development has the typical characteristics of real estate companies with large capital demand and high debt ratio,and its operating conditions are stable and financial data are easy to obtain and predict.Therefore,EVA model is used in this paper for valuation with Poly Development as the target company.The aim is to explore the company valuation and promotion strategy of Poly Development,provide reference for the transformation and upgrading of similar real estate companies such as Poly Development and improve their competitiveness,and even optimize the EVA company valuation method at the same time.Firstly,the relevant research literature o n EVA theory and company valuation by scholars at home and abroad are reviewed and evaluated.What's more,the useful research ideas and methods are referred,and then the research direction is determined.Secondly,this paper introduces the theories and methods of company valuation,analyzes the advantages,disadvantages and applicable conditions of various valuation methods,and focuses on the principle and theoretical advantages of EVA model,which lays a theoretical foundation for the research of EVA model valuation of Poly Development.Before the valuation,the general situation,strategic environment and financial situation of Poly Development are analyzed.The applicability of EVA model to Poly Development valuation is demonstrated,and an EVA valuation model suitable for Poly Development is established,which laid a necessary foundation for Poly Development EVA valuation.Based on the analysis of the financial statement data of Poly Development and the analysis of the company prospect,EVA mode l is used to obtain and analyzes the valuation results of Poly Development.After the completion,based on the financial data of Poly Development,comparative analysis method is used to analyze the rationality of the valuation results of EVA model through the horizontal comparison between EVA model and other valuation methods.At the same time,the role of EVA model valuation in improving company value is analyzed.In conclusion,there are the following conclusions: The company value of Poly Development is underestimated by the market;EVA model is applicable to the valuation of similar real estate companies such as Poly Development.EVA model can comprehensively reflect the profitability,operation ability and debt paying ability of a company,and enhance the company value aiming at the short board of company value.Finally,according to the problems found in the valuation research,this paper makes suggestions on improving the company value and improving the EVA model.