Research On Value Evaluation Of Biotechnology Enterprises Based On EVA And B-S Combination Model

Under the current background of vigorously promoting low-carbon environmental protection,the biotechnology industry has been developing rapidly.However,Cathay Biotech Inc.suffered a "Waterloo" at the beginning of its listing,and the company’s share price once fell nearly halved.As a leading enterprise in the biochemical industry,biotechnology is the world leader.What causes the company’s share price to fall again and again? How much is its intrinsic value? In order to explore the intrinsic value of Cathay Biotech Inc.,the paper first referred to the relevant research literature of past scholars.It is found that since the biochemical industry has just started in China,few scholars have studied the enterprise valuation of this industry.Therefore,how to determine the enterprise value of Cathay Biotech Inc.has become the research problem of this paper.By analyzing the development of the biochemical industry,the current business situation and the future development prospect of Cathay Biotech Inc.,this paper finds that Cathay Biotech Inc.is different from both traditional enterprises and innovative enterprises in the start-up stage.The company has its unique characteristics: first,the development of the company’s main products,in the global market dominance;Second,it has high technological innovation ability and absolute development competitiveness;Third,it has good industry development opportunities;Fourth,investment projects with potential profits.Based on these characteristics,this paper believes that the company’s enterprise value should include not only the existing value created by the existing profitability,but also the potential value created by potential projects.Potential projects contain the scientific research and innovation ability of enterprises.The potential value created by them has a far-reaching impact on enterprises and is an important part of enterprise value that can not be ignored.In terms of existing value evaluation methods,combined with the characteristics of enterprises,this paper analyzes the inapplicability of traditional evaluation methods and the advantages of EVA evaluation methods;In terms of the evaluation methods of potential value,combined with the characteristics of the asset object corresponding to the potential value of the enterprise,this paper discusses the applicability and rationality of the B-S evaluation model.After that,by evaluating the existing value and potential value of the enterprise,the enterprise value of Cathay Biotech Inc.is finally determined.Compare the appraised value with the market value and analyze the reasons for the difference.This paper believes that the potential value of Cathay Biotech Inc.is an indispensable part of the evaluation of the enterprise value,and should be fully considered.At the same time,EVA-BS combination model provides a new idea for the choice of enterprise value evaluation method.However,there are still some deficiencies in the analysis and evaluation process of this paper,which need to be further improved.