Research Of Internet Business Value Assessment Based On The Residual Income Evaluation Method

Along with the development of information technology and adjustment of theindustrial structure, Internet industry brings an increasingly profound influence on China’s economic development, leading to the growth of demands for Internet.business valuation. However, the traditional assessment instruments cannot be applied to Internet enterprise suitably. Therefore, it has become a critical problem to accurately value Internet enterprises. To solve this problem we will introduce and discuss a new valuation method based on the Residual Income Evaluation Model to figure out whether it can be applied in Internet industry.Discussion is divided into two parts, which are theoretically analysis and applicability analysis. In the first part we will mainly review and compare several papers, collect and analyze relative methods and information to build the remaining-benefits model. With further research, we will theoretically prove that Residual Income Evaluation Model suits for Internet business valuation.In the second part, we will take Baidu as a typical case to do case studies, based on the Residual Income Evaluation Model, the P/E ratios approach, Equity Cash Flow Model Through synthesizing the analyze results from valuation methods as above, we will have a general judgment on the suitability of the Residual Income Evaluation Model for Internet business valuation.