The Research On The Evaluation Of Internet Enterprise Value Based On The “Combination Method”

With the rapid economic development of the wave of advance, the use of Internet technology gradually integrated into all areas of China’s economy, China’s economic development has injected new impetus. Our active introduction of appropriate policies to encourage the development of Internet companies, "Internet +" concept put forward for Internet companies to provide more opportunities and challenges. The Internet companies attract more investors and scholars. How to accurately assess the value of Internet companies now become a hot research, economic activities on the Internet are inseparable from business valuation. Therefore, this paper discusses valuation of Internet companies in the theory of traditional methods supplemented and improved with a view to a more comprehensive and accurate assessment of the value of Internet companies. In a real sense, a reasonable assessment of the value of Internet companies can not only effectively promote the healthy development of the Internet business, it can also analyze their intrinsic value, provide the basis for decision making for investors.This article firstly sorts out the particularity of the Internet business valuation. Then contrast the applicability and limitations of traditional methods, based on the characteristics of the Internet business valuation, we selected the discounted cash flow model to assess existing assets, the real option model to assess the potential valuation. This paper argues that the combination of the two methods may supplement and improve the discounted cash flow model. This paper use Jiaodian Electronic Technology Co.,Ltd(JDKJ) as an example, use two methods to assess the business valuation. In the case of section we introduce the development of the industry, from the company’s core competitiveness, profit model, the financial aspects of the analysis, indicating that as the enabling environment to promote and market policies, JDKJ develop new business and will have a good development trend, the future potential profitability can not be ignored. Subsequently, free cash flow is determined according to the company’s assets and operating efficiency, and then determining the discount rate, the discounted future cash flows plus total worth by the first part of the business valuation; according to BS model to determine the parameters of use assess the value of the potential profitability of the second part of the enterprise Real options. The last two sections of the total value added is the value of the enterprise as a whole, and the assessment results are analyzed.Research, the main conclusions and recommendations of this paper as follows: Firstly, Internet companies at the stage of rapid development, its valuation is more focused on the future profitability and the value of existing assets is only a part, the potential value of opportunity can not be ignored. Secondly, the discounted cash flow model is used widely, then the combination of real options method to complement it, you can better assess the value of Internet companies. Thirdly, the problem for the assessment found JDKJ while expanding the scale should be reasonable control costs to develop steady; raise assets as soon as possible to enable and expand existing business, improve competitiveness; and improving the risk control ability. Fourthly, for the lack of this article, and in future studies should weaken the influence of subjective factors, and be able to find more effective ways to evaluate the results of inspection.