Research On Valuation Methods Listed Companies In The Pharmaceutical Industry

Assess the value of the enterprise more and more people's attention,to become corporate financial management,investment decisions,equity transactions and mergers and acquisitions of important reference factor in the majority of enterprise managers and investors,'and to provide an effective assessment tools.Perceived value,it has become a measure of the value of the size of the basis and premise for all management behavior and economic behavior.Currently,foreign capital markets more developed countries,the valuation theory and method system has become mature,but not enough in-depth theoretical study of the valuation,assessment methods are not perfect,the current domestic business valuation methods used include discounted cash flow method,option pricing,relative valuation method,many methods are technical limitations that exist in practice,not a complete theoretical system,but through research and practice tests,many scholars believe that the discounted cash flow can be well applied in China valuation of enterprises.The pharmaceutical industry and people's lives,is one of the major support from the industry,occupies an important place position in the national economy.Traditional industries and the pharmaceutical industry will combine modern industry,the industry is gradually emerging economies of scale,has been in a stable and healthy development of the state,China's efforts to carry out health care reform,the development of the pharmaceutical industry will face better prospects.Correct assessment of enterprise value is conducive to business owners better understand the intrinsic value of the enterprise,is conducive to investors to measure the performance of the company on corporate finance and investors have provided some help,and inter-corporate equity transactions and mergers and acquisitions offer decisions.In this paper,the study sample selected China's pharmaceutical industry 10 listed companies,integrated use of literature review to explore the theory,case studies and empirical methods,a method of business valuation model and its application were studied.The first part of this article describes the background and significance of research methods of the present topic,describes the business valuation and related literature at home and abroad are presented and the overall framework of the whole thesis writing ideas;the second and the third part focuses on studies estimate the current mainstream theory,the Chinese pharmaceutical industry and value-driven nature combine,compare,and ultimately chose to study the value of China's pharmaceutical industry listed companies with a cash discount valuation model.IV and V with a discounted cash flow model to calculate enterprise value through concrete steps and calculation methods.And select 10 representative of the pharmaceutical industry enterprises listed companies as a sample,and the statistical analysis of the relationship between the intrinsic value and the market value of the business between the inspection and testing the applicability of discounted cash flow method.Through empirical testing,we found that the appraised value and the market value of the sample enterprises are highly correlated,suggesting that free cash flow discount model to be used to assess the investment value of listed companies in China's pharmaceutical industry,the feasibility and applicability.