Abstract
This paper presents the purpose and importance of evaluation of corporate value. Researcher chooses chemical material industry, which plays a crucial role in the economic development of Taiwan as the starting point and picks Everlight Chemical and Eternal Materials as research targets. Based on the Discounted Cash Flow Method and the Economic Value Added Model, the research takes both long-term and short-term evaluations into consideration. The research shows these three following results: 1.Everlight Chemical emphasizes on the corporate social responsibility (CSR) but struggles in the issue of high research expenses and low capital utilization. 2.Eternal Materials’s development is relatively steady. The major challenge for Eternal Materials nowadays is the high dependency on China Market, which also points out the urgency of diversification of product market development. 3.Both Everlight Chemical and Eternal Materials’s situations are reflected on the performance of recent stock prices and have a positive relationship with the trend of stock price. The research concludes that the long term stock price changes verify the validity of the discounted cash flow method and the economic value added model.