Re-estimation of Valuation Methods for Medical-Device Enterprises at Different Financing Stages

Hongji Li ()
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Hongji Li: The Chinese University of Hong Kong, Business School

A chapter in Proceedings of the 2025 International Conference on Hybrid Commerce, Human Capital, and Economic Dynamics (ICHCH 2025), 2026, pp 621-631 from Springer

Abstract: Abstract As global demographic ageing intensifies and healthcare demand escalates, the medical-device sector has become a focal point for capital allocation. Valuation of these enterprises, however, remains highly intricate owing to protracted research and development (R&D) horizons, rigorous regulatory oversight, and pronounced revenue uncertainty. Conventional relative multiples (e.g., price-to-earnings, price-to-sales) and absolute discounted-cash-flow frameworks exhibit limited efficacy when applied to pre-revenue or revenue-volatile start-ups. This study introduces a precedent-transaction–anchored valuation paradigm that bifurcates firms into two distinct stages: (i) core product already commercialized and (ii) core product pre-commercial. Stage-specific valuation determinants are delineated, permitting calibrated premia and discounts relative to the selected comparable. Empirical calibration using Shenzhen MGI Tech Co., Ltd, Qitan Technology Ltd., Shangyang Medical and others corroborates the model’s validity and precision across successive private placement rounds. Relative to traditional methodologies, the proposed framework delivers markedly superior accuracy and operational applicability for early-stage medical-device enterprises, furnishing investors and entrepreneurs with a more robust valuation reference.

Keywords: Medical Devices; Enterprise Valuation; Start-ups (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-2-38476-585-0_70

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