Applied Research Of Real Options In Assessing The Value Of Internet Companies

In recent years, for the Internet enterprises in our country, the number of transactions of property rights has increased year by year, and single average transaction amount gradually increased. In order to reduce the risk of the transaction between the two parties and other investors, it is necessary to study the evaluation of the Internet enterprise value subject, and construct a scientific and reasonable evaluation method for the Internet enterprise value.This paper takes Letv company as the research object, on the basis of the existing theory and evaluation methods of enterprise value assessment for an in-depth study and research, using the real option to assess the Internet enterprise value, striving to enrich the theory of enterprise value assessment and expanding the method of enterprise value assessment, making an useful exploration to the actual operation of the value assessment of the Internet enterprise. For this reason, this article first study the theories of enterprise value assessment and real options, on the basis of understanding the characteristics of the Internet companies value assessment, analyzing the defects of traditional enterprise value assessment method in assessing the Internet enterprise value, demonstrating the applicability of real option theory in assessing the Internet companies, then analyzing the present situation and development trend of the macroeconomic environment, analyzing the present situation and development trend of the Internet industry, and describing the Letv company’s existing business and potential business, stress on analyzing the Letv company’s financial situation, using ARIMA model to predict the Letv company’s free cash flow, calculating the current asset value through the discounted cash flow method, then applying the Black-Scholes option pricing model to assess the value of Letv company’s options, then analyzing the evaluation results, and taking a verification analysis for the evaluation method.The results show that. (1) Comparing with the traditional enterprise value assessment method, the real option is more suitable for evaluating the value of Internet companies. (2) Real options can accurately assess the value of Internet companies. (3) Real option is a scientific and reasonable method for assessing the value of Internet enterprises. On the basis of the conclusions of the study, making three suggestions about whether the real options can be applied to assess the value of Internet companies, whether investors can invest Letv company’s stock, and taking a further in-depth study on assessing method for the Internet companies value.