Research On The Network Enterprise Valuation

The Internet valuation was beginning at 1990s in United States. While the Internet economy developed in a large scale, Internet enterprise such as Internet Connecting Provider (ICP) and Internet Service Provider (ISP) established as mushrooms. Then the economic action related with Internet enterprise, such as taking in investment in the stock market, purchasing the right of properties , come into being gradually. The market require objective and fare valuation of network enterprise so that the result can be refer to when a decision is made. But till now, the valuation of Internet enterprise has not formed a relatively perfect methodology. This article has formulate in theory the origin of the enterprise value, and the principles, features , method of the valuation of Internet enterprise. Be directed at the shortcoming of current valuation method of Internet enterprise, simple and lack of adaptation, this article give some new idea. It has been emphasized that the Internet enterprise value is possible and the future profit is uncertain. It put forward that when valuate the whole property of Internet enterprise by means of NPV, not assess all the likely profit of Internet enterprise by means of NPV only, but assess the current business and the extending business respectively. It looks the opportunity of investment in new business and earning more cash current as an important intangible property of Internet enterprise. It formulates the essence of the value of opportunity and its difference from commercial reputation. The theory of option is introduced when value of opportunity is valuated, especially Black-Scholes model, which resolve the problem of valuation of opportunity and lay a good foundation for valuation of Internet enterprise.In the last part of this paper, the writer take into account that the option model is used weakly in practice, and the Internet enterprise is in a small scale , operation management being not well regulated, index of model being not easy to attain, creatively introduce the method of vague Mathematics and AHP in valuation of Internet enterprise . This paper tries to describe the similarity between Internetenterprise to be valuated and enterprise refering to in precision mathematic language, and analyze the main factors scientifically. It changes the analysis of quality identity into the analysis of quantity identity.There are three parts in this paper. The first part (including Chapter 1) summarize the research concerned national and international and introduce the background and meaning of this paper. The second part(including Chapter 2,3) analyze the origin of Internet enterprise value and the principles and methods of Internet enterprise evaluating. The third part (including Chapter 4,5) explore the new idea of Internet enterprise evaluating.