The Research On The Enterprise Valuation Of AnKe Biotechnology Co.,Ltd Based On EVA

As one of the strategically emerging industries,biopharmaceutical industry enjoys enormous supports from government, and thus achieves unprecedented development in industry scale and investment.Gradually, listed biopharmaceutical enterprises have attracted a great deal of investors. Undoubtedly, no matter the investment on biopharmaceutical companies or those companies' self-management and development should be established on the reasonable value estimate of biopharmaceutical companies.Biopharmaceutical enterprises, with high R&D, high-risk, and high-yield,are different from the general enterprises; therefore their valuation requires appropriate and special method.After considering the advantages and disadvantages of the traditional business valuation methods,EVA model as well as characteristics of biopharmaceutical enterprise' value,this paper chooses Anke Biotechnology Co.,Ltd as the representative of biopharmaceutical enterprise, using the EVA model to analyze the value of it.Firstly, this paper analyzes and compares merits and demerits of traditional valuation methods and EVA model, as well as the applicability of various valuation methods in biopharmaceutical enterprise in the theoretical part;Secondly, based on analysis towards factors affecting the value of AnKe Biotechnology, this paper furtherly elaborates the applicability of EVA model in AnKe Biotechnology and creates an EVA model which is used to calculate the value of Anke Biotechnology, according to its characteristic.Finally, in the instruction of the created evaluation model with EVA and basis of historical years, this paper predict the EVA of rapid growth period and stable growth period and weighted average cost of capital, and then calculate the value of Anke Biotechnology in valuation date, comparing the value with the market value to give investment advice, thus to analyze its reasonability.The study indicates that the EVA model is suitable for the valuation of AnKe Biotechnology and Biopharmaceutical enterprises, the valuation results can provide a reference for the investors purchasing the company's stock and equity acquirers, in the meantime,providing guidance for other biopharmaceutical enterprises valuation in their valuation process.