Analysis of the Innovative Drugs Market from the Aspect of Heng Rui

DOI

10.2991/assehr.k.211209.314How to use a DOI?

Keywords

Innovative drug; Heng Rui; DCF model; Enterprise value assessment

Abstract

It is currently thought that the innovative drug sector has played a critical role in the listing and financing of high-tech firms. Affected by the outbreak of coronavirus pandemic, China’s pharmaceutical companies are expected to soar even more spectacularly, therefore this kind of pharmaceutical firms’ investment value recognition has generally attracted attention from the venture investment organizations. However, traditional enterprise valuation methods, such as relative valuation methods and the price – earnings ratio, often find it difficult to fully reflect the intrinsic value of the companies. This paper analyzes the current market trend and establishes a DCF model of the Heng Rui Pharma whose valuation result has some reference significance to innovative drugs market. During this analysis process, the statistics from the Wind and the financial statements can be processed logically with the aid of Excel and graphic program. The results demonstrate that Heng Rui Pharma is worth to investors in the long run, but it is not recommended to be heavily invested in. The results also have implications for understanding that the innovative drugs market is one of few the diamond grade track.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Jiali Chen
PY  - 2021
DA  - 2021/12/15
TI  - Analysis of the Innovative Drugs Market from the Aspect of Heng Rui
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1929
EP  - 1933
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.314
DO  - 10.2991/assehr.k.211209.314
ID  - Chen2021
ER  -