Research On Value Evaluation And Promotion Of Wowu Biological Company

With the continuous improvement of living standards of Chinese residents,the role of biomedical industry in our social life is becoming more and more prominent,which plays an increasingly important role in the social stability and economic prosperity of our country.Improving the value of pharmaceutical enterprises can help the rapid development of national economy.However,due to the characteristics of high-risk,high-yield and long cycle in biomedical industry,traditional enterprise value evaluation methods can not accurately evaluate the actual value of such enterprises.In this case,it is necessary to explore the value evaluation process and methods suitable for pharmaceutical companies,and find out the key factors of enterprise value promotion,so as to help the company to formulate the corresponding value promotion strategy.On the basis of relevant research at home and abroad,this paper first expounds the concepts of pharmaceutical enterprises,enterprise value,enterprise value evaluation and four methods of value evaluation.Secondly,according to the actual situation of our company,we can conclude that cost method and market method are not suitable for such high-risk,high-yield and long-term biomedical companies,and there are some limitations in the discounted cash flow method.In this regard,we introduce the real option method to determine the combination of the discounted cash flow method and the real option method,And based on the two kinds of evaluation methods to build the value evaluation model.Thirdly,we use the discounted free cash flow method to evaluate the value of the company's existing assets.At the same time,we identify the types and characteristics of the real options of our company,use the real options method to evaluate the company's option value,and add the two methods to estimate the company's overall value.Finally,through the evaluation results and sensitivity analysis,find out the important factors that affect the enterprise value promotion,and put forward suggestions to enhance the enterprise value of Wowu Biological company.