The Valuation Of Pharmaceutical Corporation In China Growth Enterprise Market

The first 28 companies were listed in China growth enterprise market on Oct. 30, 2009. What on earth are those companies? How should we to computer the valuation of those. This paper will focus on both questions.In this paper, I chose the products oriental pharmaceutical companies to answer the above questions. After some theory analysis and testing, I think that the valuation models include investors'model and IPO model.Investors'model will be used by the investors and the IPO model will be used by the IPO companies and investment banks.I choose the way of discounted free cash flow when using the investors'model. The key of using DFCF is the computation of the parameter than the model itself. And in the long term, the investors'model will not influenced by the market liquidation and investors'sentiment.In IPO model, I think the IPO price will influenced by the market liquidation and investors'sentiment. So in this model I will use the PE (price to earning) for valuation.