Research On The Choice Of B2C E-commerce Firm's Value Evaluation Method

In recent years,China's e-commerce driven by "Internet +" strategy and "Mass entrepreneurship and innovation",which develop rapidly.In particular,the B2C e-commerce market obtained a strong development which results in the top-rank growth rate of transaction and global consumer market.The development of B2C e-commerce in China is in the stage of rapid expansion,and many B2C e-commerce companies have listed.Their investment,financing,mergers and other activities get a lot of earnest attention by people,to carry out these activities are involved in B2C e-commerce enterprise value evaluation.There are many methods of enterprise value evaluation,but B2C e-commerce enterprises are different from the traditional enterprise in sales mode and management mode,which is characterized by large investment,high risk,future earnings uncertainty and other characteristics.Accordingly,it makes the cost method and market method inapplicable to evaluate the B2C E-commerce enterprise.Thus,it is significant to choose a suitable method for assessing a B2C e-commerce enterprise value.Through a large number of literature research,based on the research status of domestic and foreign enterprises' value evaluation methods,we summarize the characteristics,profit model and performance of China's B2C e-commerce enterprises.it laid the foundation for understanding the value of B2C e-commerce enterprises.By comparing and analyzing the traditional enterprise value evaluation method,we analyze the principle and applicability of the DCF method,EVA method,residual income valuation method and the real option method which are generally used for enterprise value assessment.Moreover,we demonstrate the above four kinds of methods for assessing the value of a domestic B2C electronic business enterprise by analyzing its finance,which based on the analysis of its business strategy,profit model and financial situation.Finally,it is found that EVA is the most effective method for evaluating a B2C electronic commerce enterprise from the perspective of assessment accuracy and applicability.