Network Enterprise Valuation Study

Nasdaq is the famous Growth Enterprise Market in the world, and it is the thermometer of the New Economy. But in the recent one year, the market value of the Nasdaq has shrinked more than 60 percent.How does the foam of the New Economy come into being? How can we value the company in the New Economy impartially and objectively? This thesis will aim at these questions in the internet company which is the most typical company in the New Economy. I think during the value evaluation of the internet company, we ought to attach importance to two things: the first is the developing anticipations from the commercial model of the internet company; Another one is the transform ability from commercial model to profit of the internet company.This thesis can be divided into three parts. The first part is deal with the internet companies and their value contribution. In this part, I introduce the definition and the type of the internet companies first of all. Then I analyze the benefit and the cost of the internet company in different develop stages; At last, I introduce the present condition of the internet company in our country.The second part is about the present value evaluation methods and their shortcomings. At first, I introduce two methods in the value evaluation of the internet company : the revisable P/E model of Henry Blodget and the Price/Visit amout model. Then I point out the shortcomings of them: the value evaluation is founded upon the anticipation completely; Attaching excessive importance on the "attention", these bring about the ignorance of the connotation of the internet; In addition, the extraordinary prospection of the internet industry can not indicate the extraordinary prospection of every internet company, the prospection is only a exterior factor in the value evaluation ,not the determinable factor.The last part is the novel part of this thesis , I take a initiative explore in themethod of the value evaluation of the internet company. In this part, I analyze the interior and the exterior fators which can influence the value of the internet company. Then I point out the principles which we should observe in the value evaluation of the internet company. Finally, I introduce the value evaluation methods of the Public internet company and the Common internet company: In regard to the Public internet company, we can use the FCFE model and the Consumer Value method, then we can use the EVA method to examine the rationality of the evaluation. For the Common internet company we can compare it with similar Public internet company, then adjust the value of it based on the value discount of noncirculation and the value rise of the control.