Internet Enterprise Value Research Based On Customer Value

Corporate valuation is a precondition for companies to do a series of action,including raise capital,acquire mergers,reorganize or publicly trade.Internet firms bring new growth points to economic development and new challenges as well.On the one hand,traditional enterprise valuation methods have large deviations from the valuation of Internet companies.Plenty of excellent Chinese Internet companies have to go public in foreign capital markets.On the other hand,Internet companies with poor financial performance and even losses can have valuations at around 10 billion.This article thus gives full attention to the phenomenon of high valuation of Internet companies.It is believed that the high valuation of Internet companies stems from the expectation of value.The expected market derivative value is actually the expression of uncertainty.It balances the market risk and probability weight and the uncertainty comes from the market.The basic lot of the Internet market is the most important intangible asset of Internet companies.Under the attention economy,users are the main source of firm's competitive advantage.The expressive power of websites is the value carrier.meanwhile,the degree of interaction between users and corporate websites is the value trigger point.It is the difference between the competitive advantages achieved by enterprises which leads to the difference in corporate value.Based on the basic theories of economics,this paper analyzes the logic behind the high valuation phenomenon of Internet companies by means of DCF model,MM theory and Kahneman's theory.This paper also analyzes the rationality of the value based on expectations in the value of Internet enterprises.The model of customer value is constructed in the three dimensions,i.e.user stickiness,user volume and payments.We hope this paper can provide a new idea for understanding value and realizing value.By using the balanced panel data of listed companies of Internet companies in 2013-2017 as sample,the panel threshold model is applied to analyze the relationship between customer value and firm value.Finally,we discuss how companies can gain competitive advantage by leveraging user operations.The results show that from the perspective of the market,user engagement is a representation of the value of Internet enterprise customers,it is an embodiment of the market leading ability of enterprise value and an important component of expected value.Expectations stem from uncertainty.Uncertainty stems from market users.Platform companies with active user advantages can form unique barriers to derivatives,making it easier to create derivative business value than competitors.User's stickiness,user volume,and currency paying power are the key to the company's ability to create value.Each of them have a positive effect on corporate value,but the degree varies.Since the reform and opening up,Chinese Internet companies have experienced structural changes and developments,including diversification of business methods and cross-integration of business applications.Although the customer value of China's Internet listed companies is generally in a steady state of rising,there is a great imbalance and improvements are needed in general.The focus of value management should be on how to identify and how to build stable and long-lasting relationships with valued users.Therefore,companies must first consider how to identify customer value,and then should know which factors will affect customer value.The key to creating value for an enterprise is to create more customer value.This is the source of competitive advantage and the strategic logic for cultivating core competitiveness to create value.