Introduction to Eva Method and Corporate Valuation - Taking Tsingtao Brewery as an Example

Abstract

EVA (Economic Value Added) method, namely the performance evaluation method of Economic Value Added, is a method of business performance proposed in view of the defects of traditional accounting profits. The advantage of EVA method is that it reflects the value-added income obtained by shareholders from business activities. Generally speaking, EVA is equal to the balance of the enterprise's after-tax profit after deducting the cost of equity capital and debt invested. Taking tsingtao beer as an example, this paper analyzes the enterprise valuation by EVA method.