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

In recent years,China’s biopharmaceutical enterprises have been developing rapidly and have a large market space,and the industry has generally entered a stage of rapid development.Although China has introduced the "Drug Administration Law of the People’s Republic of China","14th Five-Year Plan" and other relevant laws and regulations to to safeguard business development,but it is also very important to properly evaluate and guide them.Biopharmaceutical enterprises have high investment,long periodicity and high market risk.Therefore,the valuation of the traditional method can be significantly different from the true value,which indicates that there is a deficiency in the valuation of biopharmaceutical companies,so a new method needs to be explored in the valuation process of biopharmaceutical companies.This paper firstly introduces the theories related to enterprise value assessment,economic value added and real options,and then describes the current situation and characteristics of biopharmaceutical enterprises,and analyzes the applicability of traditional valuation methods,and chooses to combine the income approach and the real options approach to value biopharmaceutical enterprises,and constructs a valuation model to calculate the operating value of enterprises with the EVA model and to calculate the option value of enterprises with the B-S model in the real option model to calculate the option value of the enterprise.In this paper,we take Hualan Bio as a case company,and use EVA model to measure its operating value and B-S model to calculate the option value of the enterprise,and finally sum up the two values to arrive at the enterprise value.By comparing the valuation results with the market value on the base date,this paper concludes that the combination of EVA model and B-S model can be closer to the market value when valuing biopharmaceutical companies.Through analysis,it is found that the combination of EVA model and B-S model has significant advantages in the value valuation of biomedical enterprises.The overall value calculated by Eva model can better reflect the intrinsic value of enterprises.This method can provide scientific basis for the financial activities of such enterprises such as investment and financing,additional stock issuance,merger and reorganization,etc.It can provide more accurate information for companies and shareholders,so as to effectively identify and avoid risks.It can also help enterprise managers to make scientific and rational decisions,thus promoting the healthy development of the biomedical industry.Meanwhile,through the case study of Hualan Biological,this paper also provides reference guidance for the value assessment of other biomedical enterprises in the same industry.