Research On The Investment Value Of Listed Pharmaceutical Companies In China

Over the past 40 years of reform and opening up,China's securities market has gradually developed from slow exploration into today's securities market which settlement network is covering all parts of the country,as well as the trading technology is int eh world advanced level.Despite this,there are still many problems existed in China's securities market.The volatility of stock prices and the irrational components in the market are the main factors affecting the healthy development of China's securities market.In particular,domestic individual investors are currently over-represented in the overall market,but they are lack of inventive to have a rational understanding and investment expertise.They tend to easily rely on "outside news" and blindly follow the trend of other investors,which is not only conducive to the appreciation of personal assets but also impact the healthy development of China's securities market.The pharmaceutical industry is not only has strong rigid demand,but also has low degree of association with economic cycle.In path with the country continues to increase investment and reform of the pharmaceutical and medical environment,the pharmaceutical industry is beginning to face enormous opportunities.This paper takes Beijing Sl Pharmaceutical Co,ltd,a relatively promising pharmaceutical company in the pharmaceutical industry,as an example to conduct the analysis of its investment.And this paper will conduct the research from the macroeconomic environment,pharmaceutical manufacturing,and the listed companies to carry out the specific analysis.Through the detailed analysis of the fundamentals of Shuanglu Pharmaceutical,and the horizontal and vertical comparison with the target enterprises and their own,this paper will reveal the basic survival situation of Shuanglu Pharmaceutical..Then this paper will carry on more accurate estimations and predictions of Beijing Sl Pharmaceutical Co,ltd's stock value through the P/E method,P/B method,the method of discount of free cash flow and Tobin Q value model.This paper will then draw a conclusion that the most reasonable price of the Beijing Sl Pharmaceutical Co,ltd.is from 26.77RMB to 42.48RMB Per stock.Since the stock price is slightly lower than the most reasonable price range,it means it is appropriate price for investors to purchase.At same time,this paper also provide some potential risks that investors could use as references.Finally,this paper summarizes some thoughts on the listed companies in China's pharmaceutical industry from the analysis of the investment value of Shuanglu Pharmaceutical,in order to provide investors a clear and easy-to-understand way to evaluate the investment value of China's pharmaceutical listed companies.It will help investors to have a better understand of our country's medical industry circumstances and provide them valuable references for their future investment in medical industry.