The enterprise value referred to in this paper refers to the value of a sustainable enterprise, that is, the present value of its future cash flow. And enterprise value evaluation is to judge the value of enterprise's sustainable operation. The process of estimation is the process of scientifically quantifying the future benefit level of enterprises.

Enterprise value evaluation plays an important role and significance for China enterprises, especially listed companies, to improve their management level and successfully realize the interests of different subjects. Specific performance in the following aspects:

(A) the idea of maximizing enterprise value is helpful to improve the operation of the company. Every listed company is based on satisfying the interests of all creditors and preferred shareholders (because ordinary shareholders can supervise the enterprise through the board of directors and safeguard their own interests). The greater the enterprise value, the safer the interests of creditors and preferred shareholders; The higher the value of the company, the higher the stock price, the more returns it can give to shareholders, and the more it can attract investors.

(B) Enterprise value assessment can accurately reflect the true value of the company. The traditional book value ignores the time value and opportunity cost of company assets and is often underestimated. Even the value of intangible assets is not estimated. For example, the book value of enterprises in the fields of biopharmaceuticals and telecommunications technology is low, while the stock market price is high. Some enterprises with complete sets of plant equipment but no development prospects have high book value and low market value. Through market value evaluation, we can better reflect the true value of the company.

(C) Enterprise value assessment provides conditions for the perfection and development of China's capital market and capital operation. In recent years, China's capital market has developed rapidly. After 1990, the CSRC promulgated a series of laws and regulations, and the capital market gradually formed. At the same time, the capital operation climaxes one after another, with more than 270 mergers and acquisitions of 1997 listed companies in Shenzhen and Shanghai stock markets. During the period of 1998, nearly 400 companies reorganized their assets to varying degrees. These M&A and restructuring activities are carried out on the basis of enterprise value evaluation, so enterprise value evaluation promotes the standardization and development of China's capital market and capital operation.

(D) Enterprise value assessment can effectively improve the current situation of enterprise management in China. All listed companies in China have to undergo strict screening. Theoretically, the performance of listed companies should be better than that of non-listed companies. However, statistics show that the financial situation of listed companies is declining year by year. From 1995 to 1999, the return on equity decreased from 10.74% to 8.38%, and the earnings per share decreased from 0.25 yuan to 0.208 yuan. In 2000, the average return on equity of listed companies dropped to 8. 1 1%. This is mainly because listed companies only pay attention to raising funds, not to the reform of enterprise system and the improvement of management. The shareholders' meeting, the board of directors and the board of supervisors exist in name only, and still retain many management methods and methods of state-owned enterprises. Implementing enterprise value maximization management through enterprise value evaluation will certainly standardize the management of listed companies and help listed companies in China get out of the predicament.