Research On Valuation Of Biomedical Enterprises Based On B-S Model

In recent years,capital market has relaxed listing conditions for biomedical enterprises with obvious technological advantages but no profit,which has promoted the development of innovation-driven biomedical enterprises.However,in order to expand financing channels and achieve high-quality capital market,this type of enterprises must meet corresponding expectation of market value.Therefore,this paper will establish a scientific and reasonable value evaluation system for biomedical enterprises,fully explore the true value of this type of enterprises,and provide assistance for them to achieve high-quality capital market.In view of industry characteristics of biomedical enterprises,single traditional valuation method is often difficult to effectively calculate their option value,so overall value evaluation of enterprises is also difficult.Based on analysis of value composition,this paper considers that value of this type.of enterprise should be sum of entity value and option value.Therefore,FCFF model is combined with B-S model to construct overall value evaluation model of biomedical enterprises.Then taking Junshi Biosciences,the first company to realize "NEEQ+HKEx"model,as research object,empirical study found that entity value measured by FCFF model is distorted,while option value measured by B-S model is highly consistent with market value of enterprise.This shows that the option value calculated by the B-S model constitutes the main part of the overall value of the introduction biomedical enterprise.The reason is that different enterprises have different life cycles,different stage characteristics and value composition.Junshi Biosciences is precisely because of the introduction stage of the life cycle,so the overall profit model of enterprises is not yet mature,the indicator data fluctuations in the early period,the future data of enterprises under the FCFF model can not be reasonably predicted.On the contrary,the B-S model in this stage can better find the future option value of the enterprise,can better match the income and expenditure,and realize the reasonable prediction of enterprise value.Therefore,applicability of the model is adjusted according to the stage of enterprise’s life cycle,so as to ensure that the valuation results of the enterprise can be as accurate and reasonable as possible.