J. Research On Enterprise Value Assessment Methods

The pharmaceutical industry is not only a traditional industry,but also a new industry with high technology content.In the context of policy reform in the pharmaceutical industry,corporate valuation will affect the future development strategy of enterprises.This requires investors and business personnel to pay attention to the enterprise value assessment.Only in line with the enterprise’s value evaluation method,can bring positive effects for the enterprise,meet the needs of investors and employees,make efforts for the good economic development,and contribute to the well-being of the residents.At present,the wave of state-owned enterprise reform has hit,and as a state-owned pharmaceutical enterprise,J has a heavy responsibility and should do a good job in enterprise value assessment.In order to complete the purpose of J enterprise value evaluation,this paper takes the domestic and foreign research as the starting point,and considers enterprise value with a variety of research methods.This paper introduces the development process and present situation of the enterprise,and summarizes the organizational structure of the enterprise.From the production and sales and financial aspects of the enterprise,the analysis of the overall situation of the enterprise.Take the financial factor and the nonfinancial factor as the factor which affects the enterprise value appraisal.When using the market method,several similar enterprises are selected and the average result is corrected by using the market method to obtain the enterprise value result.In addition,the free cash flow method is used to predict future cash flow based on historical data.Under the calculation of the growth rate derived from the formula,the estimation conclusion is more accurate.Compare and analyze the application of the two methods.Factors such as industry characteristics,continuity of operation,life cycle and data availability are considered.Finally,the results of the valuation are fully compared and the risks that lead to the undervaluation are analyzed.The exploration of enterprise value method of J is expected to achieve better development in the future.