Anke Bio-enterprise Value Assessment Based On Free Cash Flow

With the orderly landing of China’s medical reform,the pharmaceutical industry has gradually ushered in a new development cycle under the influence of high-frequency policy guidance,healthy industrial development strategy,and aging population.As an crucial part of the national economy in terms of national economy and people’s livelihood,the pharmaceutical industry has received much attention both in real life and in the capital market.Under the current Sino-US trade friction,the substitution of pharmaceutical imports will accelerate,and the fine-molecule industry of domestic medicine faces good development opportunities.Under the influence of the current national policy of supporting domestic anti-cancer generic drugs and the continuous expansion of domestic anti-cancer drugs,the bio-pharmaceutical industry has shown broad development space and is increasingly favored by institutional and individual investors in the capital market.At this time,how to effectively evaluate the value of enterprises in this sub-sector with a long history is becoming more and more critical.This paper aims to find a set of valuation methods that can objectively evaluate the development status of biomedical industry enterprises.The article briefly introduces the three mainstream value assessment methods in the academic circle and the market: market law,cost method and income method,and introduces the application of the free cash flow method.Then,this paper takes AnkeBio as the case enterprise of enterprise value evaluation,and evaluates the value of the company by the discounted free cash flow method.The third chapter of this paper begins to summarize the development status of the target enterprise and the background of the industry.The fourth chapter of the article is based on the induction and analysis of the previous article.The value of Anke bio-enterprise is evaluated by the free cash flow discounting model.After the result is compared with the performance of the company’s stock in the securities market,the cash flow is obtained.Under the discounted method,whether the value of the biomedical industry company can be reasonably explored,and explore the difference between the market value and the intrinsic value of the enterprise.