Applying the Value Assessment of New Energy Companies Based on the EVA Model—An Example from Ningde Times New Energy Technology Co

Abstract

Compared to traditional methods of assessing business value, the EVA method can evaluate business value in a more reasonable manner. The purpose of this paper is to assess the business value of Ningde Times, one of the representative firms in the new energy industry, based on EVA model in order to prove the reasonableness and reliability of EVA method in evaluating the value of new energy companies. By analyzing the current financial situation of Ningde Times and applying the two-step EVA model to evaluate its business value, in the final calculation, Ningde Times is found to overestimate its per-share value, which is consistent with the direction of its trend in the stock price market, indicating that the EVA model is reasonable and reliable for estimating firm value, which provides a benchmark for enterprise value assessment of the new energy sector.