Assessment Of The Value Of The Pharmaceutical Companies

Medicine industry is one of 15 kinds of international estate who is divided by international standard, which possesses high growth and high profit character. It is always called "the eternal rising sunny industry" . Lots of investors realize medicine industry has good prospect and great demanding. It is important to catch the investment chance in medicine industry, to evaluate the comprehensive quality of a pharmaceutical company and to understand its internal value. Common evaluation system and evaluation model are relative evaluation approaches, they can not estimate the investment value of the enterprise accurately or objectively.To aim directly at pharmaceutical company on Chinese stock market and its character, this article try to raise a quality evaluation system and valuing model from investor's angle. It thinks one pharmaceutical corporation's value needs to be evaluated from two aspects: first, to appraise its comprehensive quality; second, to evaluate its internal value according to the future payoff from investor's angle.A quality evaluating system is set up to appraise the comprehensive quality of one pharmaceutical corporation. It chooses six evaluation targets such as enterprise institution, competition superiority, financial affairs-, operating ability, growth ability and human resources and 31 specific evaluation targets. Because of the corporation's advanced polytechnic characteristics, this system chooses advanced technology corporation's average targets and advanced targets as evaluation standard. Forty-five pharmaceutical corporation's quality evaluation fraction is analyzed according to the system and their evaluation results that are more valuable to invest are listed.Two-stage increasing evaluate model which suits the pharmaceutical corporation is used to value its internal worth according to the corporation's high growth and high profit character in this article. This model assumes a different discount rate between high growth stage and constant stage by means of forecasting corporation's future free cash flow quantity. The total discount value is the internal value of enterprise. For example, this article gives a comprehensive analysis to Tongrentang Corporation. This model is used toevaluate its value combined with the quality results of Tongrentang.