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Assessment Of Risk And Value Of Biological Pharmaceutical Enterprises Based On Growth Period

Posted on:2016-06-18Degree:MasterType:Thesis
Country:ChinaCandidate:X N SuFull Text:PDF
GTID:2309330503476944Subject:Asset assessment
Abstract/Summary:PDF Full Text Request
In recent years, with the development and improvement of biotechnology and the overall economic level, Biopharmaceutical industry gets more and more national attention. In our country, as one of the key support emerging industries, Bio-pharmaceutical industry is playing an important role in order to improve people’s quality of life, increase employment, promote economic development, improve all aspects of our scientific and technological strength and international competitiveness. However, in the current study, few scholars consider the risk factors of the stages of the life cycle in the process of valuation. Therefore, this paper is devoted to analysis and quantified of risk factors for growing biological pharmaceutical enterprises,in order to improve the accuracy of the results of the valuation.First of all, considering the characteristics of biological pharmacy enterprises and research results, we find that strategic risk, operation risk, financial risk and from external competition risk emerges in the growth period. Then, we find that main risk factors will eventually increase volatility in the cash flow, thus we choose the risk adjusting coefficient. Secondly, in the choice of the evaluation model of the enterprise value, according to various main assessment methods, applicable range and conditions, we determine the enterprises is suitable for assessment by the entity discounted cash flow model. And we get the entity discounted cash flow model through the adjustment of risk coefficient. Finally, the modified model is applied to a biological pharmaceutical companie -- China Orchid Biological Engineering Co., Ltd. (002007). To exam the rationality of the adjusted evaluation model, we compare the results with the market value at the evaluation point.
Keywords/Search Tags:The growth period, Biological pharmaceutical enterprises, Risk adjusting coefficient, Entity cash flow
PDF Full Text Request
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