The Application of EVA in Enterprise Value Evaluation --Take the Bao 'an Group for example
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Modern enterprise control system is divided into good decision-making mechanism, performance evaluation system and employee compensation policy. Among these three factors, the performance evaluation system becomes the performance evaluation index of enterprises, which plays an important role in guiding the development of enterprises and motivating employees. The economic added value (EVA) assessment system implemented in China in 2010 is a performance evaluation system formulated to cope with the transformation difficulties of domestic enterprises. On the basis of theoretical research, this paper selects Bao 'an Group as the case analysis object. First, this paper introduces the basic situation of Bao 'an Group. Secondly, EVA value evaluation model is used to evaluate the enterprise value, compare the actual situation and evaluation results of the enterprise, and find out the reasons for the difference. Finally, the advantages and disadvantages of EVA in practical use are analyzed, existing theoretical and practical problems are found out, and countermeasures and suggestions are proposed. It is expected that the analysis of this paper can help enterprise managers to clarify the management direction and improve the quality and efficiency of enterprises.
Enterprise value, EVA, The cost of capital.