Research And Application Of Internet Enterprise Valuation Techniques

In recent years, the Internet is developing rapidly in our country, and has extended into various social fields. “Internet +” mode in our country has become a trend and maintained fairly rapid development momentum, Internet companies in capital markets are also acting increasingly frequently. In this big data environment, company valuation is especially important to Internet. This paper conducted a thorough research on Internet enterprises. Besides the characteristics of Internet development raised, this paper has also analyzed the relevant limits of the traditional technology,and raised technical customers suitable for Internet enterprise valuation—— value valuation techniques. The valuation method is based on the Internet to evaluate the market value of the relevant enterprises, to provide useful information for investment decisions of Internet companies.At first, this paper studied the particularity of the Internet industry development,analyzed the differences between Internet industry and traditional industry as well as its own development characteristics. Upon the analysis of traditional enterprise valuation methods,traditional valuation methods are divided into relative valuation techniques and absolute valuation techniques for classify discussion.This paper also respectively expounded the application limits of valuation methods in Internet industry,such as discounted cash flow model, dividend discount model and price earning valuation methods,and put forward suitable Internet valuation method,namely customer value valuation model.This paper selected LETV as example.LETV is a very representative of the video industry,as same as to the revelant analysis.The future profit of the Internet industry mainly relys on the amount of enterprise customers, as to the Internet industry, customer's cash flow can be used to measure enterprise value therefore. This article paper discussed the valuation of networks technology while taking account of the customer value of the Internet enterprises. In addition, this article grouped customers into active users and non-active users. Based on customer pay rate, the aggregation of the customer discounted cash flow equals to the totalenterprise value. By contrastively analyzing customer value valuation theory and traditional value assessment theory, we can know that the customer value theory for evaluating the Internet industry is truely feasible.