Research On The Construction And Application Of Value Assessment Model For Chinese Medicine Enterprises

Against the backdrop of the new pneumonia epidemic,Chinese medicine has been effective in fighting the epidemic and promoting the revival of the Chinese medicine industry.At the same time,the 14th Five-Year Plan also proposes to vigorously develop the Chinese medicine industry and calls for new drug innovation in Chinese medicine.In this context,how to scientifically and accurately assess the enterprise value,so that Chinese medicine enterprises can find the right position and enhance the enterprise value has become a key concern.To this end,based on the theories and applications of enterprise value assessment,value assessment methods and applicability at home and abroad,this paper constructs a comprehensive valuation model for Chinese medicine enterprises using hierarchical analysis and entropy method,applies YL Pharmaceutical case data to practice the model and tests its applicability.Main research work and conclusions:(1)summarize the domestic and foreign research related to enterprise value assessment and method applicability,and introduce the integrated valuation method.The research shows that:the current enterprise value assessment methods are mainly divided into cost method,market method and income method,and this paper adopts the integrated valuation method combining AHP method and entropy value method for the complete embodiment of enterprise value and comprehensive consideration of enterprise’s past,present and future.In addition,since the discounted free cash flow method and the price-earnings ratio method are relatively mature,the selection of these two methods will assist in validating the constructed valuation model.(2)In-depth analysis of the development status and characteristics of the Chinese medicine industry and the establishment of a comprehensive valuation model for Chinese medicine enterprises.The study shows that the model is constructed by screening three dimensions of cost,market and revenue and nine indicators to establish an enterprise value assessment index system,applying the AHP method and hierarchical analysis method,and combining the total equity and the average value of year-end closing price of the target enterprises in the past five years.(3)The comprehensive valuation model is applied to YL Pharmaceutical,and the applicability of the comprehensive valuation model is verified by combining the P/E model and FCFF valuation model,and relevant recommendations are made to YL Pharmaceutical.The study shows that the P/E model underestimates the value of YL Pharmaceutical,and the integrated valuation model can reflect the overall value of the company more comprehensively than the FCFF valuation method.It concludes that the reason for the integrated valuation model being higher than the market value is the innovation power and cultivation base of YL Pharmaceutical,and thus makes feasible suggestions for the value enhancement of Chinese Medicine Industry.This paper further enriches the valuation research results of Chinese medicine enterprises,and the single case study on the valuation of YL Pharmaceuticals is also a mutual complement to the research on the valuation methods of Chinese medicine enterprises,which provides a theoretical basis and reference for the valuation research of Chinese medicine enterprises.