Value Evaluation Of Medical Device Enterprise Based On EVA Valuation Model

With the rapid development of our economic level and technical level,China has gradually become an economic power.People’s living standards have been improved,and they have been basically satisfied in material aspects such as food,clothing,housing and transportation.Therefore,people’s attention has begun to turn to health care.In the medical industry,the field of medical devices is an indispensable part of the hardware equipment to protect people’s life and health.At the same time,the support of national policies and the trend of global aging are promoting the rapid development of medical device enterprises.This has attracted a large number of investors in the market.But before investing in an enterprise,we must first understand the overall development of the enterprise,so we need to make a set of reliable value evaluation of the enterprise,to predict whether it can create value sustainability.Therefore,based on this background,this paper verifies which method is more suitable for enterprise value assessment in this industry by using EVA valuation model and other methods.The main research products of cardiac medical enterprise are aortic and peripheral vascular intervention equipment.With the development of the past two years,this enterprise has also gained a certain competitiveness in the whole industry,and is a typical representative enterprise in the medical device industry.Therefore,based on the case analysis method,this paper takes Xin Mai medical treatment medicine as the target enterprise and evaluates its enterprise value.At present,a variety of evaluation methods from different dimensions have been gradually developed in the theoretical research of enterprise value evaluation.Many traditional evaluation methods take accounting profit as the core index,without considering other capital costs of enterprises.Or they only focus on the current book value,without considering the development trend of the enterprise in the future,the ability to create value,etc.All these will lead to the final valuation results can not objectively and effectively reflect the value of the enterprise.This paper uses EVA valuation model,which is based on financial report data,but at the same time,it also adds or removes related items to effectively avoid the risks brought by accounting information distortion and subjective factors of financial personnel.At the same time,it also includes the cost of debt capital and cost of equity capital in the total capital,and focuses on the growth ability of enterprises and the value that can be created in the future for the management of enterprises And investors to provide more in line with the actual data.Finally,we also use market method,dividend discount method and free cash flow method to evaluate cardiac care,analyze and compare the differences of several valuation methods.In this paper,EVA valuation model was used to evaluate the value of Xin Mai medical treatment,and the following conclusions were reached: Firstly,on the base date of evaluation,the enterprise value of Xin Mai medical treatment was underestimated by the market.In this paper,EVA method was used to evaluate the value of Xin Mai medical treatment.And it was found that the valuation result was slightly higher than the market value on that day.This may be because the capital market is not perfect,its effectiveness is not strong,there are a large number of potential investors in the market,resulting in the market lag and delay,unable to timely and accurately reflect the real enterprise value.Secondly,enterprises like Xin Mai medical treatment are more suitable to use EVA’s two-stage growth model for valuation.In 2019,Heart-Pulse Medical received national policy support and was successfully listed on the Science and Technology Innovation Board.The development of the enterprise has entered a new stage and maintained a high growth state.However,any enterprise will encounter bottlenecks in the development stage,so the development speed will gradually slow down in the later stage and then maintain a stable rate.To sum up,this paper believes that the EVA two-stage growth model is more suitable for the high-risk,high-return and technology-intensive medical device enterprises such as Xin Mai medical treatment.Thirdly,EVA valuation model provides more reference ideas for the valuation of other medical device industries and even high-tech industries.EVA valuation model originated from the west,and its development started late in China.However,from a dynamic perspective,this method can adjust the after-tax operating profit and total capital of the premium enterprise,so as to more accurately reflect the company’s profitability and future operating capacity.Judging from the valuation results of Xin Mai medical treatment,EVA valuation model also has a certain universality to other enterprises in the medical device industry,so some similar enterprises can also take it as the basis for enterprise value evaluation.