Analysis of Investment Value of Traditional Chinese Medicine Enterprises Based on Genetic Algorithm

Whether a company has investment value and how to measure its investment value are the primary concerns of every investor. Effectively evaluating the investment value of a company can not only help the company recognize its own problems and value, achieve faster growth, but also help investors obtain more investment returns. This study selects 9 traditional Chinese medicine enterprises listed in Yunnan and Guizhou provinces as the research objects, and constructs an evaluation model based on projection pursuit model using four indicators of enterprise growth, profitability, revenue quality, and operational ability. Genetic algorithm is used to solve for the optimal projection value, and a comprehensive and objective evaluation model for the investment value of traditional Chinese medicine enterprises is established. The analysis found that among the four indicators that affect the investment value of traditional Chinese medicine enterprises, the weight of profitability indicator is 0.393, the weight of growth indicator is 0.215, the weight of operation indicator is 0.213, and the weight of return quality indicator is 0.179. Among the secondary indicators, the highest weight is total asset turnover rate, followed by net operating cash flow/total operating income, which are 0.202 and 0.158, respectively. Investors can consider these indicators comprehensively in the investment process to select investment targets; Traditional Chinese medicine enterprises can strengthen their capabilities in related fields, enhance their own value, and attract more investment.