Based On The Discounted Free Cash Flow Method DB Pharmaceuticals Value Evaluation Study

With the deepening development of market economy,the community has gradually realized the importance of value evaluation to the business development and management decision of enterprises.At present,the development degree of China's capital market is relatively backward compared with that in the developed countries of Britain and the United States,and the theoretical research on enterprise value evaluation is not mature enough,and the relevant practice cases are also relatively lacking.Among the many evaluation methods,the free cash flow discount method is used to evaluate the value of the enterprise,and its core idea is to the enterprise's future profitability and the current enterprise value plus the intrinsic value of the enterprise,and its evaluation results can not only reflect the business status of the enterprise in the current stage,but also reflect the profitability of the future development of the enterprise.The evaluation results obtained by FCFF method can give reasonable and effective reference to the company's operation,strategy formulation or investment decision.This method also has certain applicability to China's capital market.With the development of science and technology in China and the gradual advancement of medical reform,the attention of all sectors of society to pharmaceutical enterprises is becoming more and more high.Therefore,based on the study of free cash flow discount model,this paper selects DB Pharmaceutical company to do case analysis,will get the valuation results compared with the valuation results of the capital market,look for the main factors affecting the development of enterprises and put forward reasonable suggestions.This thesis includes six parts: the first part expounds the research background and significance of this thesis,the research status of value evaluation theory and method at home and abroad,as well as the research method and content of this thesis.The second part is the related concept and theoretical basis of value evaluation,introduces the related concepts of enterprise value evaluation and the common evaluation methods,and on this basis,paves the way for the next model construction.The third part is a detailed introduction to the current situation of DB pharmaceutical company's operation,fully understand the target company in order to build the model reasonable to determine the parameters.The Part IV is the construction of the value evaluation model of DB pharmaceutical company based on the free cash flow discount method.Firstly,the paper introduces the discount model framework adopted in this thesis,then constructs the value evaluation system of DB pharmaceutical company by case study,and finally formulates the parameters that conform to the present situation of DB pharmaceutical company,and constructs a reasonable evaluation system.The V part uses FCFF model to evaluate the intrinsic value of DB pharmaceutical company,compare its intrinsic value with benchmark evaluation of the market value of day DB pharmaceutical company,and validate the evaluation results with the P/E method.The sixth part is the conclusion and suggestion.This paper analyzes the reasons for the difference between the valuation results and market value of DB pharmaceutical company,extracts the main factors that affect the value enhancement of the company,and puts forward appropriate and effective suggestions for the improvement of the enterprise value of DB pharmaceutical company.