Research on Enterprise Value Evaluation of Sanquan Food Based on EVA

Abstract

In the context of increasing attention to food safety in recent years, Sanquan Food, as one of the important enterprises in the food industry, its valuation is of great significance to both investors and managers. A reasonable valuation method can provide strong support for decision-making. Therefore, this paper selects the Economic Value Added (EVA) valuation method and the Price - Earnings Ratio (PE) valuation method to evaluate Sanquan Food and compares their differences. Firstly, the EVA valuation method can more comprehensively reflect the economic value and management performance of an enterprise by considering the after - tax net operating profit after deducting the cost of capital. For large enterprises like Sanquan Food, the EVA valuation method is particularly suitable for measuring their long - term value and helps management formulate strategic decisions for sustainable development. Secondly, the price - earnings ratio valuation method evaluates the value of an enterprise by comparing the market price with its profitability. For investors, the price - earnings ratio is an important indicator to measure investment returns, especially for enterprises in the food industry that are stable and have good profitability, the price - earnings ratio valuation method can provide a quick reference. In this paper, the combination of these two methods can provide a more comprehensive valuation perspective. The EVA valuation method emphasizes long - term value and management efficiency, while the price - earnings ratio valuation method provides the current market's evaluation of the enterprise. By comparing the valuation results obtained by different methods, investors and managers can better understand the potential and risks of the enterprise, so as to make wise decisions. In conclusion, as an industry leader, Sanquan Food must choose an appropriate valuation method. Through the research in this paper, it can provide effective valuation tools and decision - making basis for investors and managers, promote the sustainable development of the enterprise and the realization of long - term value.