Research On The Enterprise Value Evaluation Of Yunnan Baiyao Based On The Improved EVA Metho

With the development of the market system,enterprise value assessment has become more and more the focus of attention of the securities market and industry personnel.Pharmaceutical enterprises play an important role in the operation of China’s national economy,and the study of their value is of great significance to the development of the industry.However,the characteristics of high R&D,high risks and high returns lead to the traditional value assessment system not being well suited to pharmaceutical enterprises.Yunnan Baiyao,as an excellent national pharmaceutical enterprise in China,had a golden development period of several decades,but in recent years,the development of the enterprise is not optimistic,and the market value of the enterprise is continuously overtaken.The establishment of an effective value assessment system is particularly important for enterprise development and value management.This paper first analyzes the industry characteristics and corporate characteristics of Yunnan Baiyao,and concludes that the enterprise value of Yunnan Baiyao is composed of the existing value created by current assets and the potential value that may be generated by the projects under development.Second,the shortcomings of the current valuation model and the improvement ideas of the EVA value assessment system are summarized.In this way,accounting adjustments and risk adjustments are made to the EVA calculation process to reflect the realistic value of the enterprise.The real option model is also introduced to adjust and revise the EVA valuation results to make up for the neglect of the potential value of the enterprise in the EVA model before the improvement,and the improved EVA value assessment model is constructed.Finally,the model is quantitatively compared and analyzed with the valuation results of different valuation models to verify the reasonableness and applicability of the system.While providing investors with a reference for the intrinsic value of enterprises,it also provides a feasible way of thinking for the value assessment of enterprises in similar industries.In addition,the EVA system,with proper accounting adjustments,provides a good representation of the current business performance and problems in value management in the process of assessing the realistic value of enterprises,and this paper provides insights and suggestions for enhancing the value of Yunnan Baiyao enterprises.The conclusions of this paper are as follows:(1)Yunnan Baiyao’s value consists of the real value created by the company’s existing assets and the potential value that can be derived from ongoing research projects and technological innovations.(2)By comparing the results with those of the traditional valuation model,it is clear that the valuation results of the improved EVA model are the closest to the market value of Yunnan Baiyao on the benchmark date,which also proves that the system can objectively and accurately reflect the overall value of the enterprise.(3)The main problem of the current value management of Yunnan Baiyao is that it invests too much in financial assets and takes up too much capital,which hinders the improvement of the core competence of the enterprise and increases the risk of the enterprise operation without contributing to the value creation.