An Application Research On Income Approach Evaluation Of The Pharmaceutical Listed Enterprises

With the continuous improvement of China’s market economy, our capital marketincreasingly open up, the transactions in property market have been more and morefrequent, business valuation has been the key to the success of various tradingdecision. The enterprise value maximization has aroused widespread attention ofenterprise managers and corporate stakeholders. So systematically studying foreignmature business valuation theory and using them in our practical valuation are of greatsignificance to the healthy development of China’s property market.The pharmaceutical industry, known as the "eternal sunrise industry", is closelyrelated to people’s life and has a good development prospect. A correct understandingof pharmaceutical listed enterprises’ intrinsic value offers the decision basis for stockinvestment, share transfer, financing, acquisitions and enterprise development.In this paper, the research on business valuation method of listed enterprises inpharmaceutical industry is our topic. There is a combined use of literature review,theoretical statements, integrated use of the qualitative analysis and the quantitativeanalysis and model analysis. Firstly I referred to classic business valuation theory,method and model in the western countries, then considering the relative economiccharacteristics of the pharmaceutical industry, I choosed the FCFF model of incomeapproach to evaluate Kelun pharmaceutical, the largest domestic infusion industryleader, and displayed the process of business valuation such as the choice of parameter,the calculation procedure and so on. This paper displays an integrated pharmaceuticalbusiness evaluation process, and hope to be a reference for the researchers.