EVA-based Dairy Enterprise Value Assessment Take Bright Dairy,for Example

As society progresses and the economy continues to develop,the demand for information from various business stakeholders is increasing,and how to correctly calculate the value of an enterprise has become an essential subject in the study of enterprise value evaluation in China.Bright Dairy,one of the top companies in the dairy products industry,has experienced a slowdown in revenue growth and a slight year-on-year decline in recent years,therefore this article examines and analyses Bright Dairy to value it using the EVA method.From the perspective of corporate managers,valuing a company can help them choose better business objectives and improve the operational efficiency firm,thereby achieving the ultimate goal of enhancing corporate value and reaching sustainable development for corporate managers and shareholders.This paper first combs through relevant academic research at home and abroad,collates relevant research findings and discusses theories related to corporate value,while common value assessment methods were introduced and the reasons for choosing the EVA method for corporate value assessment were explained.The corporate situation of Bright Dairy and the EVA model are then described.Combined with the economic situation and relevant financial data,the realistic situation of Bright Dairy is addressed,and the characteristics of the dairy industry are taken into account.Research and development expenses and provisions are adjusted,and the base lending rate of the Central Bank of China is used as a measurement indicator to ensure its accuracy,based on the formula for EVA value evaluation,the historic EVA value is derived and used as a basis for predicting future EVA values,and then the EVA’s 2-period growth model was used to give the value of the firm at the base date of the valuation,followed by a sensitive analysis to discuss the main factors affecting the value of the firm.Bright Dairy has poor profitability,insufficient R&D expenditure and an unreasonable capital structure,and can improve its corporate value by increasing profitability,strengthening R&D investment and brand building and adjusting its capital structure.