The Research On The Enterprise Valuation Of Chuangzhou Qianhong Biopharma Co., Ltd Based On EVA

Recently,the rapid devepopment of biotechnology has brought new prospect to the research and production of pharmaceutical products,making the biopharmaceutical industry become the strategic area of national priority development and have great potential of development.Because of the great trend of the biopharmaceutical industry,investors increase the quantity of investment the well-run biopharmaceutical enterprises.Besides,the increasing number of merging and acuqistions in biopharmaceutical domain makes the value evaluation of Biopharmaceutical Enterprises particularly significant.Both invertors and acquirers hope to make the objective and reasonable valuation about target enterprises,and benefit themselves make decsions for investment and transaction pricing.Considering the features of biopharmaceutical industry,the paper finally chooses EVA evaluation model to conduct enterprise value evaluation research on Qianhong Biopharma Co.,Ltd,a representative listed company in the biopharmaceutical field,on the baisis of the comprehensive measurement of the traditional value evaluation method and EVA.Firstly,this paper introduces the background and significance of enterprise value research,reviews the domestic and foreign literature on the theoretical research and practical application of EVA,and briefly expounds the content and methods of this study.Secondly,from the prespective of enterprise value theory,the paper compares the pros and cons of traditional valuation methods with EVA methods,summaries the particularity of the biopharmaceutical industry and explains why the EVA model is suitable for the valuation of biopharmaceutical enterprises.Besides,considering the the macro-environment,industry development and financial situation,the paper modifies the revelant accounting items to build the EVA model and apply it to the practice of value evaluation on Qianhong Biopharma Co.,Ltd.Thirdly,the paper uses FCFF model,Real Option Method and relative value evaluation model to evaluate the enterprise value of Qianhong Biopharma Co.,Ltd.and compare it with the results of EVA value evaluation.Based on the sensitivity analysis on the growth rate and discount rate in FCFF model and EVA model,the paper draws the conclusion that EVA valuation model is more suitable for the evaluation of biopharmaceutical Co.,Ltd.Finally,from the perspective of EVA,the paper provides business managers with measurement enhancing the enterprise value.Besides,considering the theoretical research and practical process of EVA model,the paper indicated the limitations of EVA model itself and put forward the relevant improvement suggestions.