Research On The Valuation Of Biological Vaccine Enterprises Based On EVA-BS Model

With the continuous deepening of the ’ Healthy China ’ strategy,the development of China ’s medical and health conditions and the enhancement of people ’s awareness of prevention,the topic of vaccines has been hotly debated.The domestic bio-vaccine market has developed rapidly,and the number of bio-vaccine companies listed on the A-share market has also increased.While such companies have high growth,the uncertainty of future development is also extremely high,so traditional valuation methods are not applicable.Therefore,this paper aims to study and explore a valuation method suitable for biological vaccine enterprises to make the evaluation results more accurate and reasonable.Based on the theory of economic value added and enterprise life cycle theory,this paper analyzes the characteristics of biological vaccine enterprises in China,and expounds the applicability of traditional valuation methods to biological vaccine enterprises.Then the biological vaccine enterprises are divided into two parts: incumbent assets and research assets according to different value sources,and a valuation method suitable for both is proposed.In this method,based on the reason that EVA(Economic Value Added)model has significant advantages in calculating existing assets,considering the cost of capital and taking into account the value added of enterprises,EVA model is selected as the valuation method of incumbent assets.The BS model(Black-Scholes Option Pricing Model)takes into account the uncertainty and risk of the vaccine in the research pipeline,and has higher applicability to the potential value assessment of unlisted and clinical-stage vaccines in research,so the BS model is selected as the valuation method of research assets.Then,the combined model is applied to the valuation of Watson Biology to show the application process of the model.Finally,the validity of the EVA-BS model applied to the valuation of biological vaccine enterprises is verified.The main conclusions of this paper are as follows:(1)In the application of the valuation of biological vaccine enterprises,the EVA-BS model has certain advantages and effectiveness compared with the traditional valuation method,which provides a new research idea for the valuation of biological vaccine enterprises and enriches the evaluation system.(2)In the EVA-BS model,the weighted average cost of capital,sustainable growth rate and other factors have a greater impact on corporate valuation results.