Research On The Value Evaluation Of BGI

The 21 st century is the era of life science.Biological industry has become a new strategic industry in China.It is of positive significance to understand the internal value of high-tech biotechnology enterprises.Therefore,it is very important to establish a complete and feasible evaluation model.BGI is the leader of high-tech biotechnology enterprises,and it is representative to select BGI as a case company.This paper first describes the relevant literature and theoretical basis,and then analyzes the basic characteristics and development trend of high-tech biotechnology enterprises,and believes that its value includes the value of existing assets and the potential profitabilityBased on the value composition,this paper analyzes the applicability of enterprise value evaluation method in detail,selects two-stage growth model of free cash flow discount method and B-S model of real option method,and establishes the evaluation model of high-tech biotechnology enterprises.Then,based on the SWOT analysis of BGI,the current asset value is 17,205,258,600 yuan by using the two-stage growth model;the potential profitability value is 14,408,336,100 yuan by using the B-S model,and the overall value of BGI is 31,613,594,700 yuan.The appraisal value of each share is 79.01 yuan,which is higher than the closing price of 60 yuan at the end of 2018.The conclusion shows that the value of BGI at the end of 2018 is underestimated by the market.After analysis,macro-economy,industry competition,profit model and information asymmetry may be the influencing factors of stock price undervaluation.This paper suggests that BGI should develop new technology products,open up market,increase revenue and reduce cost;investors should also invest rationally to avoid shortsightedness.