The Application Of The Income Method In The Valuation Of Equity In The Internet And Related Service Companies

With the deepening of triple play, broadband network expansion, the popularity of intelligent terminals, China's Internet has entered a new round of rapid development. Improved hardware conditions makes use of the Internet content provider has also been considerable development. Internet and related services as the current most popular use of the industry, from the initial development of the industry into consolidation. Internet and related services as a new generation sunrise industry, developing very rapidly, which not only covers a wide range, but also involves a huge number of users. Corporate equity value of the Internet and related service industries evaluation helps enhance the overall value of the Internet and related services, but also help to improve the survival and development of the environment, and can enhance consumer awareness and understanding of relevant industries, promote healthy competition in the Internet and related service industries.As the Internet and related services industry has a lot of intangible assets can't be displayed on the report, and almost no business, size and capital structure similar to comparable companies, the paper choose the income approach to assess the Internet and related services enterprise equity value. Then a lot of reading this paper, the characteristics and difficulties of valuation and Internet related services industry are analyzed in detail, combined with the current advantages and disadvantages of big gains assessment models and related revenue metrics to judge, and ultimately choose to net income as indicators of net profit discount model as the main model for the Internet and corporate equity valuation of related services. After the paper is estimated to have profit amount and discount rate are briefly described, named its attention to the problem, for the following application case analysis to pave the way.Finally, as an object to Letv the application of the above methods of case analysis, through the basic situation of music as the description and valuation factors analysis of music, as the share price 31 December 2014 were evaluated. Final evaluation of the entire interest of shareholder value and market value is almost the same, that the assessment method is effective to further verify the Internet and in the assessment of business-related services, net income as indicators of net-discount model is effective.