Valuation Analysis of Innovative Pharmaceutical Companies on STAR Market: Evidence from Zhifei Biological

The bio-pharmaceutical industry has gained great opportunities of develop-ment under the COVID-19 epidemic. In order to fit the current market situa-tion better in the post-epidemic era, the valuation analysis of the innovative pharmaceutical industry is conducted, using a model with Zhifei Biological as an example. Based on the assumption that new drugs under the develop-ment phase can also be viewed as assets in the valuation of the company, the DCF and pipeline models are used in the process of valuation. The outbreak of the COVID-19 epidemic has caused considerable changes in the valuation system of innovative pharmaceutical companies in the STAR market, which requires further research and adjustment. This paper uses the method of pipeline valuation based on the DCF model to valuate the specific case, di-viding the companies products already on the market and in different stage of development into four different pipelines. The method is expected to have a higher applicability to the valuation of innovative pharmaceutical high-tech companies. These results shed light on guiding further exploration of valuation analysis.