Research On The Valuation Of Medical Device Companies In The Context Of Chinese Stocks Delisting:

Going public in the U.S.was a dream of many Chinese entrepreneurs,but in recent years,China’s stock market has been in a wave of privatization and delisting,and has returned to the wave of A shares.Despite this,there are still many domestic emerging companies going against the flow.The phenomenon of going public in the United States has also attracted widespread attention from scholars at home and abroad.After sorting out the opinions of many scholars,this paper finds that "the difference in valuation between China and the United States" is one of the most important reasons for delisting.However,most scholars’ research on the relationship between valuation and delisting has only remained at the qualitative level.Demonstrate from the perspective of quantitative valuation.And because each industry has different characteristics,the applicable valuation models are also different and cannot be generalized.This article attempts to verify the rationality of delisting from the perspective of valuation,and derive the best model for the valuation of Chinese medical device companies from the perspective of valuation.Provide references.This article first lists three classic and most commonly used valuation models in the market: discounted cash flow model,Ohlson model,real option model,and preliminary analysis of the applicability of each model in combination with the characteristics of the medical device industry;second,the introduction Based on the corporate background of Mindray Medical in this case,including historical evolution,macro environment,competitive landscape,main products,important financial indicators,etc.,and then based on the situation of corporate fundamentals,the three models were optimized for parameters and calculated.Valuation results;the applicability of each valuation model is further tested.The valuation results show that the predictive ability of the discounted cash flow model widely used in the industry is poor,and the Ohlson model optimized by real options has a strong Prediction ability,so this article concludes that the model is the most suitable model for the valuation of the Chinese medical device industry;finally,based on the established optimal model,the 2016 valuation of Mindray Medical’s enterprise is calculated and compared with the actual market value It was found that Mindray Medical was given a lower valuation before the US stock market was delisted.Step by step found that Mindray Medical was given a higher valuation by the market after the A-share listing in 2018.Through the above research and analysis framework,this paper uses the quantitative valuation method to derive the conclusion that "the difference in valuation between the Chinese and US markets is the main reason for the delisting of Chinese stocks." Is the optimal model for the valuation of the Chinese medical device industry.