A Value Assessment Of SL Pharmaceutical Co.,Ltd

At the end of1980s, China’s assets appraisal industry has gradually developed to meetthe requirements of economic transformation in the economic activity, which is based onforeign theory and method. Under the influence of China’s rapid economic development aswell as the background of global economic integration, the mergers and acquisitions, equitytransactions and other activities between our corporates are becoming more frequently, we seethe enterprise value assessment as the basis and foundation of the transaction pricing, which isgradually become the important reference basis for most business managers and investors todo financial management, investment decision. More and more enterprises began to payattention to this.The pharmaceutical industry is a high-tech industry group height with multidisciplinaryadvanced technology and means fusion, which involve the national health, social stability andeconomic development.1978witnessed a earth-shaking development after30years’ reformtide baptism. Biological medicine industry is the fastest-growing part of the pharmaceuticalindustry. That is the investment hot spot with the continuously good policies in recent years.This paper selects the Beijing SL Pharmaceutical Co. as a specific case, analyze thedevelopment of the company, operations and financial statements to study the value of theirinvestments. As a leader in the emerging strategic industries in the pharmaceutical and biotechfields, SL Pharmaceutical Co. is committed to research and develop the geneticallyengineered drugs, which is the excellent performance in the industries of innovation-orientedenterprises,This paper briefly introduces the theory of valuation, followed by analysis thecharacteristics and development status about pharmaceutical and biotech industries, finallycombined with the operations and financial conditions of Beijing SL Pharmaceutical Co., Ltd.We use the free cash flow discounted method and p/e ratio method to assess the enterprisevalue, which may can provide some references for investors.