Research On Huaxi Bio-investment Value Evaluation Based On Improved EVA Value Evaluation Model

In recent years,the rapid development of biotechnology has injected new vitality into the development of biomedical industry,and the policy support of the "Tenth Five-Year Plan" has also provided great opportunities for the development of biomedical industry,which is a strategic emerging industry supported by the state.Based on the good development of biomedical industry,many investors have increased their investment in this industry.Because many investors lack professional investment knowledge,they blindly invest,which increases the investment risk.On the other hand,the number of listed companies in the bio-manufacturing industry is increasing,and mergers and acquisitions among enterprises occur from time to time,which makes it particularly important to evaluate the value of the bio-manufacturing industry.Whether for the internal or external stakeholders of the enterprise,a reasonable value evaluation of the target enterprise can provide a reasonable basis for investment decisions,as well as countermeasures and suggestions for enterprise development.Based on the characteristics of biomedical industry and the needs of various stakeholders,this paper selects and improves the EVA value evaluation model on the basis of analyzing and comparing the traditional evaluation methods.In this paper,Huaxi Biotechnology Co.,Ltd.,a biomedical industry,is selected for value evaluation.On the one hand,its stock price fluctuates greatly,which makes it difficult to accurately reflect the true value of the enterprise.Through value evaluation,we can know the approximate stock price range of the enterprise,which can provide a basis for investors to make investment decisions.On the other hand,it can provide suggestions for enterprises to improve their value management.By analyzing the present situation and existing problems of the investment value evaluation of the evaluated enterprises,this paper points out the shortcomings of the traditional evaluation methods,and combining with the industry development characteristics of enterprises and their own development situation,chooses the appropriate method for Huaxi Bio to evaluate the investment value.Based on the EVA value evaluation model,according to the characteristics of biomedical enterprises and the particularity of Huaxi Bio-Company’s non-tradable shares,this paper improves the calculation method of weighted average capital cost in EVA value evaluation model,thus optimizing the EVA value evaluation model and making it more suitable for Huaxi Bio-Company’s value evaluation.Evaluating the investment value of Huaxi Biotech is of great significance to both enterprises and investors.In this paper,the improved EVA value evaluation model is used to evaluate the target enterprise,and the evaluation results are compared with the stock market price.It is concluded that the stock value of Huaxi Bio is likely to be undervalued,and the reasons for the gap between the evaluation results and the stock market price are analyzed.Finally,the conclusion based on EVA value evaluation model provides a basis for investors to make investment decisions,and also provides methods and suggestions for enterprise managers to improve enterprise value.According to the theoretical research and practical application of EVA value evaluation model,the shortcomings of EVA value evaluation model are pointed out,and relevant suggestions for later improvement are put forward.