Valuation Of Biomedical Enterprises Based On FCFF Model

In recent years,under the trend of economic globalization,domestic and foreign enterprises have developed rapidly,and the efficiency of capital operation has become higher and higher.Mergers,acquisitions and reorganizations among enterprises make enterprise value evaluation become an important means of inter-company transaction and communication.The field of biomedicine has developed gradually,with the progress of social economy,people’s demand for health is higher and higher.The State Food and Drug Administration has published policies to support biomedicine,promote the construction of pharmaceutical laboratories,and incorporate a series of drugs and vaccines into the national development strategy.As an emerging enterprise in biomedicine,Boteng has a late start and rapid development,with few researches.The value evaluation of Boteng can improve the research field,and the analysis of the evaluation results can provide reference for Boteng.First of all,this thesis describes the status and significance of the research,and summarizes the enterprise value assessment methods,which are mainly divided into absolute valuation method and relative valuation method.By analyzing the applicability of various methods,it is found that the data source of the free cash flow model is clear,which can reflect the national policy and the future development of the enterprise.Secondly,it analyzes the profitability,debt paying ability,operating ability and other financial conditions and industry characteristics of Boteng Shares.The enterprise has good operating capacity and is in the growth stage.The macro environment is conducive to the development of the enterprise.It is expected to be in the rapid development stage in the future,and then enter the stable development stage.Finally,the GM(1,1)model and the unvariable regression analysis model were used to estimate the items included in the free cash flow of Boteng shares in the forecast period,and the valuation result of Boteng shares was 23.242 billion yuan,with an error of4.21% compared with the actual market value of the base date of evaluation,indicating that the constructed model is more effective for the value evaluation of biomedical enterprises.According to the evaluation results,two suggestions for investors are given: For investors who want to invest in biomedical enterprises,the FCFF model can be adopted to evaluate the value of the target enterprises,and then compared and verified with the actual market value to find investment opportunities.Second,the biomedicine industry in our country changes with each passing day.The national policy and its own research and development are gradually advancing,the demand is large,the future prospects are broad,and there are good investment prospects.In addition,this thesis finds out the main factors affecting the enterprise value of Boteng Stock through sensitivity analysis,and puts forward the following six suggestions for the enterprise: improve the operating revenue;Reduce operating costs;Adjusting the capital structure of enterprises;Speed up the efficiency of working capital;Reasonable control of operating expenses;Appropriately control the proportion of R&D investment.The above suggestions hope to provide reference for the value added of Boteng shares.