REVA-based Value Analysis on Listed Companies of Power Industry

The paper establishes the regression model based on the economic value added(EVA), refined economic value added(REVA), net profit, net cash flow and other indicators selected from the financial data of power industry. Correlation analysis indicates that, in comparison with traditional financial indicators, EVA and REVA are more efficient in studying the value of China's electric power enterprises. And the interpretation to enterprise value will be more persuasive when combining EVA, REVA with traditional financial indicators. The study also finds out that the interpretative power of EVA-related indicators to enterprise value has been gradually increasing over the past seven years.