Value Evaluation Of Pharmaceutical Enterprises Based On Real Option Method

harmaceutical enterprises have developed rapidly and become one of the country's strategic pillar industries.At the same time,China's pharmaceutical market has also become the world's second largest pharmaceutical market.With the continuous deepening of the pharmaceutical industry structure,the problem of population aging and the increasing emphasis on medical insurance,the pharmaceutical industry has entered a period of rapid development.The listing,reorganization and mergers and acquisitions of pharmaceutical companies occur frequently,and accurate assessment of the value of pharmaceutical companies can provide an important reference for the company's listing,mergers and acquisitions and restructuring.At this stage,China's pharmaceutical enterprises have the characteristics of high initial investment,high operational risk and high proportion of intangible assets.First,uncertainty will bring potential profitability to pharmaceutical companies,and this potential profitability is equivalent to the combination of many options owned by the company.This value cannot be estimated by traditional evaluation methods.Secondly,pharmaceutical companies have a large number of Intangible assets,these intangible assets provide the company with a continuous driving force for future development and an important part of corporate value.Because the intangible assets of pharmaceutical companies account for a large proportion,this part of intangible assets is difficult to calculate accurately by traditional evaluation methods.Therefore,it is necessary to construct a model that can accurately calculate the value of off-balance-sheet assets.Finally,the decision-making of enterprises is dynamic.Future flexible management becomes an integral part of corporate value,but traditional valuation methods ignore this part of the value and thus lead to undervalued pharmaceutical companies.Through the above analysis,it can be seen that the value of China's pharmaceutical enterprises cannot be accurately calculated through the traditional value assessment model,which may cause investors to ignore investment opportunities,which may result in difficulties in financing the listed companies and even limited development of the industry.Therefore,it is very important to establish a model that can accurately assess the value of pharmaceutical companies.This paper attempts to establish a model that can accurately assess the value of Chinese pharmaceutical companies through analysis.The content of the article is divided into five parts.The first part is the introduction part.Through the description of the background,it points out the necessity of using appropriate methods to evaluate the value of Chinese pharmaceutical enterprises.And combing the domestic and foreign scholars' research on corporate value evaluation and real option method.In the second part,based on the understanding of the characteristics and value composition of pharmaceutical companies,this paper analyzes the applicability of cost method,market method,income method and real option method to evaluate the value of pharmaceutical enterprises.Finally,the discounted cash flow model is selected.Evaluate the business value of the enterprise and use the real option method to evaluate the value of the option that the enterprise has.In the third part,after determining the model construction ideas,this paper separately discusses the meaning and calculation method of the specific parameters required to evaluate the business value of the enterprise using the free cash flow discount model,and calculates the option value of the enterprise by using the real option evaluation model.The meaning and calculation method of the basic parameters required.Thus a general model for the valuation of pharmaceutical companies was established.In the fourth part,this paper takes Yunnanbaiyao Company as an example to evaluate the enterprise value by real option method.First of all,this paper discusses in detail the reasons for choosing Yunnanbaiyao Company as a specific case,and analyzes the basic parameters used in the evaluation process.Secondly,this paper uses the free cash flow discount model to calculate the operating value of Yunnanbaiyao Co.,Ltd.,and uses the real option method to calculate the option value of the enterprise to obtain the overall value of Yunnanbaiyao Company.Finally,this paper analyzes the reasons why the market value of Yunnanbaiyao Company is underestimated and the rationality of using the real option model to evaluate the value of Yunnanbaiyao Company.In the fifth part,through the theoretical analysis in the second chapter and the case analysis in the fourth chapter,the conclusion that the real option method can accurately calculate the overall value of Chinese pharmaceutical enterprises is obtained.After combing the characteristics and value composition of the pharmaceutical industry,this paper analyzes the applicability of the commonly used enterprise value assessment methods,and finally establishes a general model suitable for assessing the value of pharmaceutical enterprises,and validates the established case with Yunnanbaiyao Company as a case.The real option model can more accurately assess the overall value of pharmaceutical companies.At the same time,this paper further supplements the scope of the evaluation subject of the real option method.