Resaerch On The Improvement Of The Value Evalueation Of The Biological Medicines Co By Market Method

Asset appraisal is the product of a certain stage of the development of market economy. China’s economic system reform deeply and further. Eighth Plenary Meeting held in November 2013 highlights for the first time that the public sector of the economy and the non-public sector of the economy are the main components of the market economy and puts forward the concept of developing mixed ownership economy. Thus, equity change is bound to make large-scale asset restructuring,mergers and acquisitions, financial reform and so on place and the development space of assets assessment can be greatly improved. At the same time, it also puts forward higher requirements for the rationality and scientificity of asset evaluation, which is a severe challenge and development opportunity for China’s asset evaluation industry.The value assessment of enterprise in developed countries has been widely used in strategic investment, mergers and acquisitions and other key areas and it has formed a relatively mature model, evaluation method and theory by a long period of development and improvement. Asset evaluation in China came into being along with the reform of state-owned enterprises and some problems involved short development time, narrow field, small scope of application and single evaluation method are more and more important. But, the feasibility and effectiveness of foreign related value assessment theory in our country has been generally recognized. The most commonly used method in foreign market is market method. However, we are mainly using the cost method, which is different from the mature capital market greatly.With the development of the world economy, change of living environment and the concept of people’s health, the acceleration of the process of population aging and so on factors, and the bio pharmaceutical industry related to human closely hasremained sustained growth trend. Bio pharmaceutical industry is recognized as the "never decline of the sunrise industry". The investor enthusiasm runs high and the industry ushers in the good development opportunity. So evaluation is also very important for the bio pharmaceutical industry.However, bio pharmaceutical industry has characteristics of a long cycle, high technology, high investment and risk. A lot of intangible assets and earnings uncertainty make the use of the method of cost and benefit deficiencies. In addition,the use of market method also has subjectivity and randomness of determining some key technical indicators and parameters. Therefore, this paper will use the improved market method to evaluate the bio pharmaceutical industry listed companies. It can provide help for enterprise value management and exploring outstanding enterprises for investors. Besides, it’s also beneficial to promote the development of the bio pharmaceutical industry healthily.This paper based on the 2012-2014 years bio pharmaceutical industry listing Corporations as research sample and according to evaluation theory, effective market hypothesis and substitution theory makes research on the application of market method. Improvement of the market method mainly launches from two paths. On the one hand, multiple linear regression is used for the study on the influencing factors of a company’s stock price and selecting the most relevant indicators with corporate stock price from a number of indicators, namely, the choice of value ratio’s influence on corporate value. On the other hand, according to the driving factors of impacting enterprise value, we select comparable companies by cluster analysis method. As the industry subdivision from wide one to narrow one, we choose comparable companies respectively from the three aspects of bio pharmaceutical companies, biological products companies, blood products companies. And we make comparison between predicted the stock price with the target company’s actual price. We can make conclusions: Overall, the improved clustering analysis method of stock price prediction effect is better than the traditional PE mean method and multivariate linear regression method to predict the effect of price. As the industry segments from width to narrow one, the price earnings ratio valuation results are more and more close with the price of stock, that’s more accurate; and the valuation results of improved marketanalysis by cluster analysis are more and more far with the stock price.