Evaluating the Development of a Continuing Care Retirement Community Based on the Example of the Taikang Insurance Group

DOI

10.2991/978-94-6463-835-6_54How to use a DOI?

Keywords

DCF; WACC; CAPM; Relative Valuation Model; CCRC

Abstract

The aging population poses significant challenges globally, altering age structures and straining societal resources. Continuing Care Retirement Communities (CCRCs) offer an innovative solution, yet their development in China remains nascent. The essay has combined an array of enterprise valuation methods to acquire a reliable estimated value for the company. The article introduces the Discounted Cash Flow (DCF) method and combines it with the Weighted Average Cost of Capital (WACC) and the Capital Asset Pricing Model (CAPM). Furthermore, the relative valuation model is also applied in the article in order to demonstrate a comprehensive valuation for the enterprise. When conducting the calculations, the article referred to the annual report of the Taikang Insurance Group and collected relative data. The article calculated a series of figures such as operating revenue, and free cash flow to evaluate the company. Results indicate that Taikang’s valuation is underestimated, reflecting reduced market risk but limited public adoption due to high costs and novelty. The DCF analysis projects long-term growth potential, while relative valuation highlights discrepancies between intrinsic and market values. Challenges include scarce benchmarking data, forecasting limitations, and industry immaturity. The study underscores CCRCs’ potential in addressing elderly care demands but emphasizes the need for government subsidies, standardized industry practices, and corporate strategies to enhance affordability and transparency. By bridging valuation insights with policy and operational recommendations, this research contributes to understanding CCRCs’ viability in China’s aging society.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Enhao Zhang
PY  - 2025
DA  - 2025/09/17
TI  - Evaluating the Development of a Continuing Care Retirement Community Based on the Example of the Taikang Insurance Group
BT  - Proceedings of the 2025 3rd International Academic Conference on Management Innovation and Economic Development (MIED 2025)
PB  - Atlantis Press
SP  - 501
EP  - 512
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-835-6_54
DO  - 10.2991/978-94-6463-835-6_54
ID  - Zhang2025
ER  -