Research On Value Evaluation Of Biotechnology Enterprises Based On EVA-PEG Valuation Method

Be caught off guard in 2020,a novel coronavirus pneumonia outbreak rapidly spread worldwide,and posed great threat to national health.As an effective means to treat infectious diseases,vaccines have also attracted worldwide attention.In China,vaccines are mainly produced and sold by biotechnology companies.In recent years,the state has issued a series of documents to vigorously promote the innovation and development of biotechnology enterprises.The value and growth space of biotechnology enterprises have also attracted more and more attention.However,biotechnology industry is a typical hightech industry,which has the characteristics of high threshold,fast growth and high risk.There are restrictions on its value evaluation with general conventional evaluation methods.Based on the study of a large number of literatures,this paper selects two evaluation methods: economic value added(EVA)and price earnings growth rate(PEG),and constructs an EVA-PEG model to evaluate the value of Walvax Biotechnology Co.,Ltd,a biotechnology enterprise.On the whole,firstly,this paper combs the relevant theories of enterprise value evaluation,analyzes the applicability of conventional cost method,market method and income method and their deficiencies in biotechnology enterprise evaluation,and puts forward EVA and PEG models with higher adaptability.Secondly,this paper summarizes the current situation and characteristics of biotechnology industry,and adjusts the model according to the value composition of the industry and enterprise characteristics.EVA evaluation method considers both equity capital and debt capital,pays attention to economic profits rather than accounting profits,and more truly reflects the revenue benefits and growth of enterprises.Accounting adjustment can make it better fit the uniqueness of biotechnology enterprises.Peg evaluation method is applicable to the value evaluation of enterprises in the period of rapid development,optimizes the P /E ratio,and lacks consideration of enterprise growth.Then this paper selects Walvax Biotechnology Co.,Ltd.as the evaluation object for case study.Based on EVA-PEG model,the adjusted EVA evaluation model is used to evaluate the value of Walvax Biotechnology Co.,Ltd,and the adjusted peg model is used for auxiliary evaluation.Finally,the evaluation value of Walvax Biotechnology Co.,Ltd.on the evaluation base date is obtained.The major conclusions of this article are as below: first,the adjusted EVA model and PEG model are more scientific and advantageous in the evaluation of biotechnology enterprises,which can better reflect the growth of enterprises and close to the internal value of enterprises.The results of the two evaluation models can also be tested and confirmed each other.Second,this paper uses the EVA-PEG model combination to calculate the evaluation value of Walvax Biotechnology Co.,Ltd.on the evaluation benchmark date.Compared with the enterprise market value,the error is within a reasonable range,which can prove the feasibility and effectiveness of the EVA-PEG model combination.The research of this paper enriches the value evaluation research of biotechnology enterprises to a certain extent,and can provide some reference for the system construction of EVA and PEG evaluation method in biotechnology industry.