Research On Optimization Of Valuation Method Of ZTE Corporation

With the help of the of 5G,ZTE not only emerged from the haze of the US embargo order in 2018,but also the change of the 5G networking mode of the three major domestic operators brought ZTE a large market share.Obviously,ZTE's position in the 5G era has improved compared with that in 4G,which is due to the company's mastery of the right to speak of technical standards and the failure of its competitors in emerging markets.As the leader of the communication equipment industry,the investment value of ZTE has attracted people's attention,and the accurate evaluation of ZTE's company value can also provide reference suggestions for external investors and the basis of market value management for company management.However,there are various difficulties in evaluating the value of ZTE Corporation: on the one hand,ZTE Corporation's operation is influenced by international relations,and the influence of international relations cannot be ignored when forecasting its financial data;On the other hand,the company invests in technology research and development,and most of the R?D expenditures are included in the current profits and losses after being expensed,which leads to the underestimation of the company value when accounting by traditional valuation methods.Based on these difficulties,it is of great significance to choose the appropriate valuation method to evaluate the value of ZTE Corporation.This paper summarizes and studies in detail the research literature of company evaluation methods,combines the characteristics of communication equipment industry and the basic situation of ZTE,and focuses on the evaluation of ZTE Corporation value by EVA model and the optimization of EVA model.And we used comparative analysis,case analysis,qualitative and quantitative analysis.Firstly,we elaborated and compared the characteristics of various valuation models in detail,and combined with the basic situation of ZTE Corporation,analyzed the current situation and existing problems of ZTE Corporation's valuation methods.Then,it expounds the applicability of EVA model to ZTE's value evaluation,and chooses two-stage model and appropriate accounting adjustment subjects to build EVA valuation model.In order to overcome the influence of subjective factors on important parameters,we use Monte Carlo simulation to optimize EVA model.Finally,we apply the EVA model optimized by Monte Carlo simulation to the evaluation of ZTE Corporation.By comparing the results of valuation methods with the value of ZTE on the benchmark date,this paper draws the conclusion that EVA model optimized by Monte Carlo simulation can reflect the market value of ZTE Corporation more accurately than the traditional valuation methods,so the use of the optimized EVA model can improve the accuracy of the valuation of ZTE.Finally,this paper summarizes the research conclusions,and further points out the areas that need to be improved when using EVA model to evaluate ZTE Corporation's value,and provides optimization ideas for the practical application of EVA model to ZTE Corporation's valuation.