Research On The Application Of Improved Market Method In Enterprise Value Evaluation Of Yabo Pharmaceutical

With the continuous optimization of China’s economic structure and steady growth of economic efficiency,the public’s health concept has been transformed from disease-centered to health-centered,which has boosted the optimization and upgrading of the medical industry.However,at present,the research of enterprise value evaluation of pharmaceutical industry is not sufficient.Commonly used research methods such as income method need more assumptions and forecast scenarios,cost method pays attention to the past but ignores the future,all have their inherent limitations.Therefore,this thesis puts forward the improved market method valuation scheme and discusses its rationality,in order to provide useful reference for the subsequent enterprise value assessment.Taking Yabo Pharmaceutical as an example,this thesis mainly uses KNN nearest neighbor algorithm,CRITIC weight method and principal component analysis method to optimize the traditional market method.Firstly,the thesis analyzes the basic characteristics of pharmaceutical industry and explains the applicability and advantages of market method in the evaluation of enterprise value in this industry.But it is also clear that the traditional market method has the technical difficulties of strong subjectivity in the selection of comparable firms and value multipliers.Secondly,an improved market method evaluation model is proposed in view of the non-uniform selection criteria and strong subjectivity of comparable firms,the single selection of value multiplier and the non-objective revision.On the one hand,a high-dimensional data space covering asset scale,risk management ability,profitability and growth ability is constructed,and CRITIC weight method and K-nearest neighbor algorithm are utilized to objectively screen comparable firms.On the other hand,the value multiplier index system is assigned objectively by the principle of dimensionality reduction of principal component analysis.Finally,the improved market method is applied to the enterprise value evaluation of Yabo Pharmaceutical.Through company profile,core competitiveness analysis,strategic analysis and financial analysis,the development and prospects of Yabo Pharmaceutical in recent years were analyzed and commented to understand the driving factors of enterprise value.It is found that the error rate of the traditional market method for estimating the enterprise value of Yabo Pharmaceutical is nearly 40%,while the improved market method is-8.11%.Meanwhile,it is found that under the background of continuous development of economic form and improvement of medical security system,various pharmaceutical sub-industries show different development trends and have different value driving factors.The innovation point of this thesis is to combine with the new era background of "deepening the reform of medical and health system,striving to promote the construction of healthy China",using qualitative and quantitative methods to put forward a new idea of pharmaceutical enterprises to realize value added.In the aspect of qualitative analysis,the external macro environment and middle industrial environment of the pharmaceutical industry are analyzed with the help of PEST analysis and Porter’s five forces model.In the aspect of quantitative analysis,the principal component analysis method is used to scientifically assign weight to each index in the comprehensive evaluation system of value multiplier,and the value driving factors of each subsector are obtained.To help pharmaceutical enterprises realize industrial transformation and upgrading,the medical industry in all aspects of healthy development to provide a reference idea.At the same time,this thesis combines case study,comparative analysis and statistical analysis.Taking the value evaluation of Yabo Pharmaceutical as the entry point,this thesis puts forward an improved market method evaluation scheme and constructs a scientific and objective value evaluation system.In order to improve the practical method of enterprise value evaluation in pharmaceutical industry and promote the further application of market method.