Research On Value Evaluation Of Biopharmaceutical Enterprises Based On EVA Model

With the continuous R & D and innovation of China’s biopharmaceutical enterprises,people’s awareness of medical care has gradually deepened,the influence of biopharmaceuticals in China’s science and technology and economic development has been increasingly emphasized by national policies.The market size and profitability of the industry have been Significant improvement.As of the end of 2018,China’s biopharmaceutical market has exceeded 350 billion yuan,with an average annual growth rate of 16.43% over the past five years,making it one of the fastest growing sub-industries in the pharmaceutical industry sector.The rapid development of the biopharmaceutical industry has prompted its enterprises to accelerate into the growth period,and the appreciation space and sustainable development capabilities of biopharmaceutical enterprises have become the focus of attention of managers and investors.However,China’s traditional value evaluation method doesn’t take into account the characteristics of biopharmaceutical enterprises,the investment value of biopharmaceutical enterprises was once lower than the market value.Therefore,it is of great significance to the growth of biopharmaceutical enterprises and the stable development of capital markets to use a reasonable value evaluation model to evaluate the value of biopharmaceutical enterprises and improve the accuracy of value evaluation.First of all,this paper sorts out the relevant literatures of EVA and biopharmaceutical enterprise value evaluation,summarizes the characteristics of growing pharmaceutical enterprises,such as high R & D investment,high marketing expenses,analyzes the limitations of traditional value evaluation methods and the application of EVA value evaluation model Sex.Secondly,select Zhifei Bio,a representative of biopharmaceutical enterprises,as the value evaluation object,apply the EVA model to the value evaluation by adjusting accounting items,calculate the enterprise value of Zhifei Bio on the evaluation base date,and use discounted cash flow method and the price-earnings ratio method for comparative analysis,shows that the intrinsic value of the EVA evaluation results is closer to the market value.It is concluded through research that:(1)EVA model is more suitable for value evaluation of biopharmaceutical enterprises;(2)EVA model can effectively evaluate the capital structure of enterprises;(3)EVA value evaluation can reflect the true intrinsic value of Zhifei Bio;(4)Zhifei Bio is a value-added enterprise with investment space.Finally,on the basis of the research conclusion,it puts forward targeted suggestions and inspirations such as increasing R & D investment and reshaping the marketing structure.By comparing the three value evaluation models,this paper proves that the EVA value evaluation method is more suitable for the evaluation of the intrinsic value of biopharmaceutical enterprises.According to the analysis of the operating characteristics and financial status of biopharmaceutical enterprises,adjusting key indicators such as R & D investment and marketing is conducive to making effective value assessments for biopharmaceutical enterprises.At the same time,the evaluation results of EVA can provide references for the optimization of the capital structure of biopharmaceutical enterprises,help managers to effectively manage the value of biopharmaceutical enterprises,and have certain reference significance for the valuation of other similar biopharmaceutical enterprises.