The Value Evaluation Of Pharmaceutical Enterprises Under The Real Option Evaluation Model

With the increasing living standards of people and the constant emphasis on health,more and more investors are entering the medical field.As a result,the listing financing,mergers and acquisitions,etc.of pharmaceutical companies are increasing,which puts more demands on the evaluation of the value of pharmaceutical companies.Traditional enterprise value assessment methods have their own application conditions.If the evaluation target is a pharmaceutical company,these methods have obvious defects.As a representative of the high-tech industry,the pharmaceutical industry has the characteristics of high investment,high risk and high profit.The value of a pharmaceutical company is not simply an existing asset,but the potential option value is also included.From the perspective of real options,the higher uncertainty in the enterprise can produce certain option value.Therefore,the real option model can be considered in the evaluation,so that the real option idea can be integrated into the high-tech pharmaceutical enterprise value evaluation.This paper takes Hualan Bio as an example to analyze the application of real options in the high-tech pharmaceutical industry.The enterprise value is divided into two parts for evaluation.One is the value of the existing assets,and the traditional free cash flow discount model is adopted.The second is the potential option value,which adopts the BS model to derive the overall value of the enterprise.It is compared with the results obtained by the market law and the income method,and combined with the market conditions around the evaluation base date.Through the analysis of this paper,it is concluded that the real option idea is introduced in the high-tech pharmaceutical enterprise price evaluation,and the real option model is combined with the free cash flow discount model of the enterprise,so that it can not only reflect the current profitability.The value of existing assets is reflected,and the value of future growth opportunities can also be reflected.The evaluation results not only meet the flexibility requirements,but also reflect the current profitability.