TITLE:
Valuation of High-Tech Enterprises Based on FCFF and B-S Combined Model: A Case Study of Hengrui Pharma
AUTHORS:
Yunyi Ge
KEYWORDS:
High-Tech Enterprises, Valuation, FCFF Model, B-S Model
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.12 No.9,
September
27,
2024
ABSTRACT: Since high-tech enterprises are characterized by a large proportion of intangible assets, high investment, high risk, high uncertainty, etc., simply choosing traditional valuation methods to assess the high-tech enterprises does not take into account the potential value of the future uncertainty of such enterprises. Taking Hengrui Pharma as an example, this paper adopts the combination model of FCFF and B-S combined model to evaluate the value of high-tech enterprises. The results show that the combination model effectively reduces the deviation from the market price and greatly increases the accuracy of the valuation, which verifies the validity of the method for the valuation of high-tech enterprises and provides a reference for the selection of valuation methods for other enterprises of the same type.