EVA model in enterprise valuation

EVA, as a performance assessment or evaluation in the enterprise (or departments), is more and more widely used. Right now, EVA is gradually being applied to the field of business valuation. However, the existing EVA evaluation model is obviously insufficient, especially not accurately reflects the impact of the profit and loss forecast for each year of the enterprise value of existence. In this paper, the EVA evaluation model is modified to overcome the defects of the model. After introducing each main parameter in the modified EVA model, differences between EVA evaluation model and net profit evaluation model after modification is presented. Then the condition of use of modified EVA evaluation model applications is revealed.