Research On The Enterprise Valuation Of Listed Pharmaceutical Companies

In recent years,mergers and acquisitions in the pharmaceutical industry are intensified.Those large enterprises who have management advantages,technological advantages and brand advantages occupy most of the market share.Enterprise valuation is very important in the mergers and acquisitions activities of pharmaceutical companies.The mixed ownership reform of state-owned pharmaceutical enterprises is also being carried out in full swing,research on the enterprise valuation is conducive to avoiding the loss of state assets and promoting private capital into state-owned enterprises,so enterprises will develop better.The valuation results of pharmaceutical companies also can verify that the strategies and plans made by the firm are correct or not,and help enterprises to make timely adjustments,and promote the development of pharmaceutical companies in the right direction.At present,there are still the following problems in the valuation research of pharmaceutical industry companies:One is in the process of using the relative valuation method,comparable enterprises are chosen subjectively and there is no objective and in-depth analysis.The other is in the valuation process,commonly used valuation models are often directly chosen for the valuation of pharmaceutical enterprises,and the applicability of the valuation models is not studied from the perspective of the pharmaceutical industry.This paper argues that it is necessary to study the two problems and solve them.Firstly,this paper gives a review on the domestic and foreign related literature on the enterprise valuation.Secondly,the paper expounds the concepts of enterprise valuation,principal component analysis and factor analysis weighting method.Then the paper analyzes the absolute valuation method,the relative valuation method and the applicability of the two valuation methods to pharmaceutical companies,and decides to study the application of relative valuation method in the pharmaceutical industry.Thirdly,this paper uses principal component analysis to optimize the selection of comparable companies,establishes a comparable index system,analyzes the steps for selecting comparable companies,and conducts case studies.Fourthly,this paper uses factor analysis weighting method to determine the applicable valuation models of each pharmaceutical sub-industry,and conducts empirical analyses of the valuation to verify the applicability of the valuation models.Finally,this paper draws the conclusions of the study,and puts forward suggestions for valuation and conducts research prospects.The paper draws conclusions as follows:Using principal component analysis to score comparable companies can improve the objectivity and accuracy of the choices of comparable enterprises.The use of factor analysis weighting method can determine the appropriate valuation model of different pharmaceutical sub-industries.The applicable valuation models for different pharmaceutical sub-industries are consistent and different.The contributions of this paper include:This paper uses principal component analysis to make the choices of comparable enterprises more objective and accurate in the valuation of pharmaceutical companies.Combined with the actual situation of various pharmaceutical sub-industries,this paper uses factor analysis weighting method to determine the appropriate valuation models of different pharmaceutical sub-industries.