Valuation Analysis of Medical Imaging Industry under COVID-19 in China

Abstract

As a matter of fact, the shadow of the pandemic has been hanging over China for three years, dealing a severe blow to the real economy, while the surge in demand for medical devices has made the medical imaging industry both challenging and exchanging. This study uses the three-year financial data of Mindray Medical, United Imaging Medical, and Yirui Technology, three representative companies in China's medical imaging industry, to estimate the enterprise value by using the DCF model and the EVA model, and concludes that the EVA model is closer to the real value, and the predicted value is lower than the market value. According to the analysis, it is predicted that the performance of all three companies will grow and recover after the pandemic. The study analyzes the data of the special period to verify the applicability of the conclusions generated by the comparison of the two models. These results shed light on guiding further exploration of valuation analysis.