Research On The Valuation Of Holdings Company Limited

The entrance into the aging society in China since 2010 will provide many great growth opportunities for medical and health care industries. Holdings Company Limited represents one of the important individual stocks and ranks the top 20 in nearly 2700 listed corporations. It has received more widespread attention due to its mergence with Guangzhou pharmaceutical, recovering of the right to use the brand “Wang Laoji” and the packaging power through lawsuits with Hong Dao group, research and development of the first domestic Viagra-like product “Jin Ge” and the subsequent successful listing, and the high-profile construction of e-commerce platform. However, the real value of Holdings Company Limited is unclear. It also remains unknown whether there is investment value. In this paper, the research has important practical significance to the stakeholders.In this study, we evaluated the value of Holdings Company Limited, absolutely and relatively, to derive a more precise estimation. The modified model of price earnings ratio, price-to-sales(PS), and net market ratio were used in the relative evaluation. In the absolute valuation, the value was assessed using the EVA(Economic Value Added). Due to the relative value valuation, in this paper, the results will be EVA valuation as the value of Holdings Company Limited, as a reference by relative valuations results. Considering the premium of A shares and H shares, we revised their values and found the intrinsic price was 46.63￥ per share. In addition, from the management and investors point of view, the valuation results verify that Holdings Company Limited has certain rationality.The intrinsic value of A shares is significantly higher than the market price, shows the relatively great value space. Again using the relevant technology analysis, confirms this conclusion. Through the analysis, the conclusion has great significance for investors.