The focus of application-oriented undergraduate colleges is to adapt to the needs of the development of The Times and have creative talents. Establishing an accurate and scientific innovative mental evaluation system for undergraduates is of great significance. Based on the structural equation, this paper evaluates the level of innovation and entrepreneurship of applied undergraduate graduates using the entropy and TOPSIS methods. Then this paper conducted an empirical study on the relevant data of universities from 2016 to 2020. The results show that students dominate in comprehensive, entrepreneurial, and creative ability output. Schools must strengthen the teaching reform of mass entrepreneurship and innovation. The school innovatively develops talent. The conclusion of the thesis has a specific reference value to promote the development of application-oriented undergraduate colleges and universities.