Firm valuation the practical case of traphaco joint stock company

FPT UNIVERSITY Bachelor of Business Administration Thesis Firm valuation: The Practical case of Traphaco Joint stock company SUPERVISOR: Lê Mạnh Đức GROUP MEMBERS: Nguyễn Thanh An SB02062 Lê Văn Thi SB02523 Đỗ Văn Đạt SB02039 Nguyễn Tuấn Hưng SB02002 Nguyễn Hữu Nguyệt Vy HS130278 Hoa Lac, May 2020 Table of Contents Table of Contents LIST OF ABBREVIATION LIST OF TABLES LIST OF FIGURES Chapter 1: Introduction 1.1 Background 1.1.1 Topic background 1.1.2 Company background 10 1.2 Research objective 11 1.3 Research question 11 1.4 Research Scope 11 1.5 Overview methodology and data 11 1.6 Thesis structure 12 1.7 Conclusion 12 Chapter 2: Literature review 13 2.1 Firm valuation 13 2.1.1 Definition 13 2.1.2 Reason and Purpose of firm valuation 13 2.2 Valuation Approaches 14 2.2.1 Asset Approach 14 2.2.2 Market approach 15 2.2.3 Income approach 15 2.3 The Discounted Cash Flow model 16 2.3.1 Concept 16 2.3.2 Reason for choosing the DCF model 17 2.3.3 Simple: Book value 17 2.3.4 Differences in book value and market value 18 2.3.5 Discounted Cash Flow method 18 2.3.6 Advantages and Disadvantages 22 2.4 Free Cash Flow to Firm 23 2.4.1 Definition 23 Page | 2.4.2 Meaning of FCFF 23 2.4.3 Calculation of FCFF 24 2.4.4 Some notes for Firm Valuation after calculating the FCFF 26 2.5 2.5.1 Definition 26 2.5.2 Popular Multiples used in Relative Valuation 27 2.5.3 Relative Valuation Method 28 2.5.4 Advantages and Disadvantages 29 2.6 Conclusion 29 Chapter 3: Methodology 30 3.1 Introduction 30 3.2 Methodology 30 3.2.1 Research Philosophy 30 3.2.2 Research Approach 30 3.2.3 Research Method 31 3.3 Data Collection Method 31 3.3.1 Sampling 32 3.3.2 Primary Data 32 3.3.3 Secondary Data 32 3.4 Relative Valuation 26 Data Analysis Method 33 3.4.1 Qualitative Analysis 33 3.4.2 Quantitative Analysis 34 3.5 Research Limitation 34 3.6 Ethics Consideration 34 3.7 Conclusion 35 Chapter 4: Findings and Analysis 36 4.1 Industry Analysis 36 4.1.1 The overall pharmaceutical industry in the World 36 4.1.2 The overall pharmaceutical industry in Vietnam 36 4.1.3 Five Forces analysis of the industry 39 4.2 Company Analysis 44 4.2.1 Traphaco’s Qualitative Analysis 44 4.2.2 Financial Statement Analysis 48 4.3 Firm Valuation 63 4.3.1 Weighted Average Cost of Capital 63 Page | 4.3.2 Firm Valuation: Method 68 4.3.3 Method 2: Pro Forma 76 4.3.4 Relative Valuation 89 Chapter 5: Conclusion and Recommendation 91 5.1 Introduction 91 5.2 Summary of findings and analysis 91 5.3 Recommendation 92 5.4 Research limitation 93 References 94 Page | LIST OF ABBREVIATION USD United States dollar DBD Binh Dinh Pharmaceutical and Medical Equipment JSC BV Book value CAPEX Capital Expenditure CCC Cash conversion cycle COGS Cost of good sold DPO Days payable outstanding DSI Days sales in inventory DSO Days sales outstanding DHG DHG Pharmaceutical Joint Stock Company DCF Discounted cash flow DMC Domesco Medical Import-Export Joint Stock Corporation EPS Earning per share EBIT Earnings Before Interest and Taxes ERP Enterprise Resource Planning EV Enterprise value ETC Ethical drugs EVFTA European-Vietnam Free Trade Agreement FPT FPT Corporation FCF Free cash flow FCFF Free cash flow to the firm GLP Good Laboratory Practice GMP Good Manufacturing Practice GPP Good Pharmacy Practices GSP Good Storage Practices GDP Gross domestic product MWG Mobile World Investment Corporation OPC OPC Pharmaceutical Joint Stock Company OTC Over the counter PS Price/Sales ratio PB Price to book ratio Page | PE Price to earnings ratio PP&E Property, Plant, and Equipment PME Pymepharco Joint Stock Company ROE Return on equity ROS Return on sale SARS-CoV2 Severe acute respiratory syndrome coronavirus TRA Traphaco Joint Stock Company US United States VND Vietnam dong WACC Weighted Average Cost of Capital Page | LIST OF TABLES Table 4-1: Pharmaceutical Industry's five-force analysis 44 Table 4-2: Traphaco's SWOT Analysis 47 Table 4-3: Current Assets' Structure 48 Table 4-4: Cash and Cash Equivalents of Pharmaceutical Companies 50 Table 4-5: Long-term assets structure 50 Table 4-6: Liabilities Structure 51 Table 4-7: Traphaco's Capital Structure 52 Table 4-8: Traphaco's Liquidity Ratios 56 Table 4-9: Inventory Turnover and DSI 57 Table 4-10: Account Receivable Turnover and DSO 57 Table 4-11: Account Payable Turnover and DPO 58 Table 4-12: Cash Conversion Cycle 58 Table 4-13: Fixed assets Turnover 59 Table 4-14: Gross profit margin of some pharmaceutical companies 60 Table 4-15: Net profit margin of some pharmaceutical companies 60 Table 4-16: Z-Score Model Result 62 Table 4-17:TRA’s EBIT from 2015 to 2019 68 Table 4-18: TRA’s adjusted EBIT from 2015 to 2019 69 Table 4-19: TRA’s ROC from 2015 to 2019 69 Table 4-20: TRA’s CAPEX from 2015 to 2019 70 Table 4-21: TRA’s depreciation from 2015 to 2019 70 Table 4-22: TRA’s net working capital from 2015 to 2019 71 Table 4-23: TRA’s reinvestment amount from 2015 to 2019 71 Table 4-24: TRA’s reinvestment rate from 2015 to 2019 71 Table 4-25: Forecast DCF for 2020 72 Table 4-26: Expected adjusted EBIT, FCFF, and DCF of TRA from 2021 to 2023 73 Table 4-27: Expected adjusted EBIT, FCFF, and DCF of TRA from 2024 to 2025 74 Table 4-28: Expected growth rate, reinvestment rate and FCFF of TRA in the stable period 74 Table 4-29: Calculating Firm's Value (million VND) and Price per share (VND) 75 Table 4-30: Sensitivity Analysis follows the change of EBIT growth rate 76 Table 4-31: Rewritten Income Statement (million VND) 79 Page | Table 4-32: Historical Sales growth 80 Table 4-33: Sales growth projection 81 Table 4-34: Historical operating costs/sales and projection 81 Table 4-35: Historical working capital/sales and projection 82 Table 4-36: Historical net assets/sales and projection 82 Table 4-37: Historical depreciation and projection 83 Table 4-38: Historical tax rate and projection 83 Table 4-39: Dividend per share projection 84 Table 4-40: Historical Cash/Current Assets and projection 84 Table 4-41: Forecasted Income Statement in Pro Forma Model 85 Table 4-42: Forecasted Balance Sheet in Pro Forma Model 86 Table 4-43: Pro Forma Valuation 88 Page | LIST OF FIGURES Figure 4-1: Current Assets Growth Chart 49 Figure 4-2: Long-term Assets Growth Chart 51 Figure 4-3: Liabilities Growth Chart 52 Figure 4-4: Equity Growth Chart 53 Figure 4-5: Sales Growth Chart 54 Figure 4-6: Cash Flow Chart 55 Figure 4-7: DuPont Analysis 61 Page | Chapter 1: Introduction 1.1 Background 1.1.1 Topic background The valuation of the company is essential in the current market economy This price, if it was analyzed and evaluated details and accurately, reflects the financial health of the company This helps not only internal managers to control the current situation of their company, but also lenders and investors to consider loans and investments in that company Besides, in merger and acquisition or bankruptcy cases, firm valuation plays an irreplaceable role in identifying a reasonable price for those cases Furthermore, with the development of stock markets all around the world, firm valuation helps personal investors make the right decision of their investment Last but not least, from analysis to estimate firm valuation, economists could have an overall judgment about the current situation of market and economy In the world, pricing needs are seen as the norm of a market economy Those needs allow economists to see the real situation of the company, and take place in different company models In Vietnam, enterprise valuation is mainly valuing equitized companies and SOEs In production and business activities, firms must always focus on increasing their value because this will create favorable conditions for them to increase profit scale, improve reputation, and competitive advantages in the market However, the valuation of the business is challenging and complicated for many different reasons, especially in an emerging market like Vietnam Firstly, the term of firm valuation is still new, so there is no agreement on the concept and valuation method for enterprises Different methods of valuation, or even the same method with different perspectives, will bring different results Therefore, there is no model for a perfectly accurate valuing model Besides, the lack of historical information about the financial position of the business is also a concern for valuation Vietnam has many new-formed enterprises, and many stateowned enterprises are in the stage of restructuring to equitize As a result, there are many inaccuracies about the economic indicators needs for declaration The market has always grown and attracted both domestic and foreign investors With the development of living standards and its necessity, pharmaceutical turns out to be a potential industry for investors due to rapid growth recently The worldwide Page | According to the Report of Management Board, Traphaco’s rate of dividend is 30% per stock per year, equal to 3,000 VND per stock, which is considered as a high rate compared to other equitized companies on the stock market To keep investors’ belief, despite decrease net profit recently, the board of directors and management board remains this rate Therefore, the amount of dividends in 2020 is expected to be approximate to 2019 Since 2021, as Traphaco’s sale is forecasted to increased rapidly, the dividend rate is hoped to increase to 40% and stable in the next following years Dividend per share (41,450,540 shares outstanding) 2020 2021 2022 2023 2024 2025 3,000 4,000 4,000 4,000 4,000 4,000 Table 4-39: Dividend per share projection o Plug In the Pro Forma Model, Plug is defined as what makes the balance sheet balances In practice, the plug is the final account that is calculated in the financial statement Normally, plug can be cash, financial debt, or treasury stocks When considering the choice of a plug-in the three accounts above, this thesis decided to choose a debt ratio as a plug because debt has changed dramatically over the years Meanwhile, the cash/current assets ratio has always kept a stable proportion, approximately 30% Through the above analysis of the financial ratio, the ratio of Traphaco holds much cash compared to other companies This amount of cash is also stable over the years, so the average cash/current assets index in the last five years is chosen as an indicator to calculate the cash amount Treasury stock accounts for a small proportion in the equity section, so it is expected to be unchanged Therefore, the most suitable plug is debt 2015 2016 2017 2018 2019 Cash/Current Assets 35.94% 25.56% 22.73% 37.88% 35.13% Average 31.45% Table 4-40: Historical Cash/Current Assets and projection Page | 84 Income statement 2019 2020 2021 2022 2023 2024 2025 Sales 1,710,439 1,624,917 1,868,655 2,148,953 2,471,296 2,718,426 2,854,347 Net Operating Costs (1,400,501) (1,327,774) (1,526,940) (1,755,981) (2,019,378) (2,221,316) (2,332,382) Interest earned on cash & marketable securities 4,485 5,447 5,115 4,467 5,137 5,770 6,196 Depreciation (82,099) (77,050) (84,585) (98,421) (114,426) (131,313) (147,143) EBIT 232,324 225,541 262,244 299,018 342,629 371,567 381,018 Interest payments on debt (17,764) (11,348) (5,495) (8,095) (18,428) (25,514) (25,633) Profit before tax 214,560 214,193 256,749 290,923 324,201 346,052 355,385 Taxes (42,912) (42,839) (51,350) (58,185) (64,840) (69,210) (71,077) Profit after tax 171,648 171,355 205,400 232,738 259,361 276,842 284,308 Dividends (141,194) (124,352) (165,802) (165,802) (165,802) (165,802) (165,802) Retained earnings 30,454 47,003 39,597 66,936 93,559 111,040 118,506 Table 4-41: Forecasted Income Statement in Pro Forma Model Page | 85 Balance sheet 2019 2020 2021 2022 I Current Assets 888,025 902,956 855,220 983,502 Cash and marketable securities 311,966 393,147 268,938 309,279 Operating Current Assets 576,059 509,810 586,281 674,224 II Long-term Assets 683,487 620,394 698,150 787,569 Fixed assets Construction in progress 14,423 Depreciable assets at cost 960,887 989,268 1,151,609 1,339,450 Accumulated depreciation (393,845) (470,896) (555,481) (653,902) Net PPE 581,465 518,372 596,128 685,547 Investments in unconsolidated affiliated 500 500 500 500 companies Noncurrent deferred and refundable income 4,669 4,669 4,669 4,669 taxes Intangibles and other 96,852 96,852 96,852 96,852 Total assets 1,571,512 1,523,351 1,553,370 1,771,072 Liabilities 453,482 358,318 348,739 499,506 Current liabilities 309,059 278,318 320,066 368,075 Debt 144,424 80,000 28,674 131,430 Shareholders' Equity 1,118,030 1,165,033 1,204,630 1,271,566 Redeemable noncontrolling interest 86,562 86,562 86,562 86,562 Stock 557,211 557,211 557,211 557,211 Treasury stock (4) (4) (4) (4) Accumulated retained earnings 472,401 519,404 559,001 625,937 Other Funds 1,860 1,860 1,860 1,860 Total liabilities and equity 1,571,512 1,523,351 1,553,370 1,771,072 Table 4-42: Forecasted Balance Sheet in Pro Forma Model 2023 1,131,028 355,671 775,357 890,401 2024 1,244,131 391,238 852,893 969,239 2025 1,306,337 410,800 895,537 1,012,600 1,556,708 (768,329) 788,380 1,766,859 1,957,363 (899,642) (1,046,785) 867,217 910,578 500 500 500 4,669 4,669 4,669 96,852 2,021,429 656,304 423,287 233,018 1,365,125 86,562 557,211 (4) 719,496 1,860 2,021,429 96,852 2,213,370 737,205 465,615 271,590 1,476,165 86,562 557,211 (4) 830,535 1,860 2,213,370 96,852 2,318,937 724,267 488,896 235,371 1,594,670 86,562 557,211 (4) 949,041 1,860 2,318,937 Page | 86 • Calculating FCFF and Calculate Firm Valuation From those analyses and estimation above, financial statements for the next six years are calculated The calculation detail is presented in the excel file, which is included in the thesis folder After this step, calculating FCFF becomes more accessible by applying the formula below 𝐹𝐶𝐹𝐹 = 𝐴𝑑𝑗𝑢𝑠𝑡𝑒𝑑 𝐸𝐵𝐼𝑇 × (1 − 𝑇𝑐 ) + 𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 − 𝐶𝐴𝑃𝐸𝑋 − ∆𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 In which Adjusted EBIT = EBIT – (Interest earned on cash & short-term investment – Interest Payment on debt) CAPEX = Current Net PP&E – Previous Net PP&E + Current Depreciation ∆Working Capital = Current Assets – Current Liabilities Tc is the tax rate As using FCFF, the appropriate discount rate chosen is the WACC, which is equal to 13.5%, as calculated above Calculation detail is presented in the file excel The final result is 53,352 VND per share Page | 87 Sales Net Operating Costs Interest earned on cash & marketable securities Depreciation EBIT Interest payments on debt Adjusted EBIT Adj.EBIT (1-t) CAPEX Delta Working Capital FCFF Terminal Value Total Value of operating assets Plus Cash and cash equivalents Plus financial investments Plus Cross-holding investments and non-cash assets Firm value with cross-holdings Minus Minority interest Minus other funds Firm value Minus Total debt Equity value Number of outstanding shares Price per share 2019 2020 2021 2022 2023 2024 2025 1,710,439 1,624,917 1,868,655 2,148,953 2,471,296 2,718,426 2,854,347 (1,400,501) (1,327,774) (1,526,940) (1,755,981) (2,019,378) (2,221,316) (2,332,382) 4,485 5,447 5,115 4,467 5,137 5,770 6,196 (82,099) 232,324 (17,764) 245,603 196,482 44,201 (77,050) 225,541 (11,348) 231,441 185,153 13,957 (35,508) 283,754 (84,585) 262,244 (5,495) 262,624 210,099 162,341 34,724 97,620 (98,421) 299,018 (8,095) 302,646 242,117 187,840 39,932 112,765 (114,426) 342,629 (18,428) 355,919 284,735 217,259 45,922 135,981 (131,313) 371,567 (25,514) 391,311 313,049 210,151 35,207 199,004 283,754 97,620 112,765 135,981 199,004 (147,143) 381,018 (25,633) 400,456 320,364 190,504 19,364 257,640 2,820,477 3,078,116 2,030,324 297,466 14,500 102,022 2,444,312 86,562 1,860 2,355,890 144,424 2,211,467 41,450,540 53,352 Table 4-43: Pro Forma Valuation Page | 88 4.3.4 Relative Valuation As mentioned above, Relative Valuation is a method to compare a group of firms that have some similar features in the market Those can be in the same industry, have some approximate financial ratios, or have similar capital structure In this section, data of about 40 pharmaceutical firms, which have already issued stocks on the Vietnam Stock Market, were collected From those data, PS is multiple chosen to identify an appropriate price for Traphaco, compared to other pharmaceutical firms in the market PE, PB, EV/EBITDA was mentioned above but not chosen because of some reason as follows First of all, some firms have a negative net profit in recent years, so that PE might not be suitable to use for every firm in this group PB multiple was not chosen because of differences in business activities Ones which focus on importing and distributing might have less investment in infrastructure than others who invest in machine and laboratory for producing medicine This will lead to the difference in book value, so PB multiple is not appropriate for these pharmaceutical companies The last one, EV/EBITDA, requires complicated calculation steps in identifying EV of each, so it might be hard to carry out with more than 40 companies After analyzing and considering all aspects, PS turns out to be the appropriate multiple to use in this section The formula of PS Multiple is presented as follow 𝐏𝐒 𝐑𝐚𝐭𝐢𝐨 = 𝐏𝐫𝐢𝐜𝐞 𝐩𝐞𝐫 𝐬𝐡𝐚𝐫𝐞 𝐌𝐚𝐫𝐤𝐞𝐭 𝐕𝐚𝐥𝐮𝐞 𝐨𝐟 𝐄𝐪𝐮𝐢𝐭𝐲 = 𝐒𝐚𝐥𝐞𝐬 𝐩𝐞𝐫 𝐬𝐡𝐚𝐫𝐞 𝐒𝐚𝐥𝐞𝐬 After analyzing the origin formula, PS Multiple can be rewritten as: 𝐏𝐒 𝐑𝐚𝐭𝐢𝐨 = 𝐍𝐞𝐭 𝐩𝐫𝐨𝐟𝐢𝐭 𝐦𝐚𝐫𝐠𝐢𝐧 × 𝐏𝐚𝐲𝐨𝐮𝐭 𝐑𝐚𝐭𝐢𝐨 × (𝟏 + 𝐠) 𝒌𝒆 − 𝐠 In which ke is the cost of equity g is the growth rate of the firm As there are more than 40 companies, to avoid complicating the regression model and due to difficulty in collecting data, this section would use these variables to carry out the regression They are the growth rate of revenue in the last two years, ln of revenue in 2019 to simplify the number, and Cash/Revenue Ratio Those data were collected from Viet Capital Stock’s Official website After running the regression model with PS Multiple as Page | 89 the dependent variable and three variables above as independent ones, the result of the PS model for Pharmaceutical Firm is presented hereafter Regression Statistics Multiple R R Square 0.541266044 0.29296893 Adjusted R Square 0.237150688 Standard Error 0.700639891 Observations 42 Coefficients Standard Error Intercept 0.294805212 0.638876086 ln (Revenue 2019) 0.058058641 0.09403714 -1.421241351 0.732638988 4.097018177 1.291531985 Revenue growth Cash/Revenue As a result, the formula to calculate PS Ratio for Vietnamese Pharmaceutical firms can be written as: 𝑃𝑆 𝑅𝑎𝑡𝑖𝑜 = 0.29 + 0.058 × ln(𝑅𝑒𝑣𝑒𝑛𝑢𝑒 2019) + 4.1 × 𝐶𝑎𝑠ℎ 𝑅𝑒𝑣𝑒𝑛𝑢𝑒 According to the collected data, the calculated PS Ratio for Traphaco is 1.51 However, at the time this thesis was being written, the actual PS of Traphaco was 1.32 This means that Traphaco was undervalued After taking some more calculations, the appropriate price for Traphaco is 62,270 VND per share However, because the R square is only 29.3%, this result would account for a small proportion of the final result Page | 90 Chapter 5: Conclusion and Recommendation 5.1 Introduction The purpose of the research team is to evaluate the value of Traphaco to bring out the exact health status of Traphaco to everyone This research also discusses all assumptions in the calculation and carries out the sensitivity analysis for factors that have effected directly to firm value In chapter and chapter 3, this thesis provides the primary content of the theory, company data, and the pricing models used by the research team in this thesis The method used to collect data and sample characters is included in the Methodology The valuation process was outlined in chapter 4, and the team made calculations based on three valuation models to determine the exact value of Traphaco's stock and value Each valuation model will offer different values, so this is only a research article for readers 5.2 Summary of findings and analysis In the findings and analysis chapter, pharmaceutical industry analysis, Traphaco’s quantitative and qualitative analysis, and process of valuing this company were presented According to the analysis above, the pharmaceutical is a developing industry with many potentials Therefore, this industry is expected to get a high rate of return in the future Traphaco is known as a top company of eastern medicine in this industry and planning to penetrate western medicine in the next years With a stable financial structure and specific plan for sustainable development, Traphaco is considered to grow rapidly in the near future This chapter also presented the process of three methods used to estimate Traphaco’s valuation The first two methods based on the Discounted Cash Flows Model, the other based on Price/Sales multiple The DCF Model presented the intrinsic value of the company but needed time to collect and analyze data Relative Valuation, on the other side, showed the price of the firm in comparison with other companies and fluctuated with the mood of the market Due to the differences in measuring and using data, each method will account for a different proportion of the final result The first method used a simple DCF Model, with an estimation of EBIT growth and return on capital However, these figures depend on many Page | 91 variants, especially the ability to manage the expenses of the company The second one, although also based on Free Cash Flow, forecasts the specific amount of accounts on Balance Sheet and Income Statement, so it tends to be more accurate The last method based on the price and revenue of other firms in the same industry and the mode of the market However, due to the lack of information related to variants, the R square is under 30%, which makes this method unreliable Therefore, after considering all aspects, each method will account for 40%, 50%, and 10% of the appropriate amount, respectively Therefore, Traphaco’s appropriate stock price is calculated as follows: TRA’s Price = Method 1's price × 40% + Method 2's price × 50% + Method 3's Price × 10% TRA’s Price = 51,367 × 0.4 + 53,352 × 0.5 + 62,269 × 0.1 = 53,450 per share The current price of Traphaco’s stock is 56,000 per share, updated at 15:00 Wednesday, April 29, 20209 This means that Traphaco is slightly overvalued at the moment However, with stable strategy and experienced managers, Traphaco’s current price is reasonable and suitable for long-term investors 5.3 Recommendation From specific analyses above, it is easy to see that Traphaco is still facing some problems, such as reducing sales and intense competition in the market Some recommendations are suggested as follows to help Traphaco keep the current situation and maximize competitive advantages First of all, R&D activities should be promoted to manufacture more products, especially specialty ones Also, procedures to penetrate the ETC channel should be completed, and specific plans must be carried out to compete in this market Furthermore, marketing campaigns need to be promoted to attract more customers and keep loyal ones Moreover, due to a low net profit margin, SG&A expenses must be managed better Last but not least, the company could consider some financial investments to minimize the opportunity cost of keeping too much money For investors, Traphaco's stock has always been a safe stock because of high creditworthiness, stable dividends, and clear vision Also, Traphaco is pioneering the Figures provided by VNDirect’s Dboard Page | 92 application of high technology in processing and manufacturing This shows that Traphaco is in the right direction and has many potentials to grow stronger in the future Based on the research results, Traphaco stock is highly recommended for long-term investment purposes However, at this moment, investors are recommended to observe the current market and wait until there is the management board’s report before making any transaction 5.4 Research limitation There are many limitations to the research process First of all, the lack of private information is also a significant limitation encountered by the research team Especially in the calculation process, the lack of information and internal data has dramatically affected the company's growth forecast The prediction in this study is a prediction based on personal opinion Furthermore, due to difficulties in finding information from other pharmaceutical companies, variables needed to serve the regression model are not enough This results in a regression model that is not as accurate as the rest of the models Moreover, this is the group's first research on valuing a company, so there might be errors in the research process In summary, the research group's lack of information and inexperience are the two most significant constraints encountered during this thesis Page | 93 References 1.Iqvia.com 2020 The Global Use Of Medicine In 2019 And Outlook To 2023 [online] Available at: [Accessed March 2020] Forum, T., 2020 Vietnam's Pharmaceutical Industry Keeps Staging High Growth [online] Vietnam Business Forum Magazine of Vietnam Chamber of Commerce and Industry (VCCI)-Economy Available at: [Accessed 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