Research On The Valuation Of The Start-up Internet Companies

With the development of the Internet industry,the number of Internet enterprise financing cases is soaring,especially for the start-up Internet companies,so how to provide fair and reasonable pricing for such enterprises has become a concern for investors and business managers.As the important sector in the investment and financing process,the evaluation of enterprises draws more and more attention,the traditional enterprise value assessment theory and method needs to be improved to meet the needs of the current valuation of start-up Internet companies.Therefore,this paper takes the start-up Internet companies as the research object,and studies the evaluation of this kind of enterprises.This paper first sort out the domestic and foreign scholars’ research results and analyzes them.Based on this,the author analyzes the characteristics of the start-up Internet companies,the difficulty of the Internet enterprise’s evaluation and the applicability of the traditional valuation methods.The conclusion is that Discounted Cash Flow Method is the most applicable and widely used method in China’s evaluation practice.This paper chooses the typical case of start-up Internet enterprise evaluation as the research object,analyzes the case on the basis of the theory,and finds out problems with the estimation of the enterprise risk coefficient,the forecast of the main business income and the quantification of business model of the case company.Then combined with the characteristics of start-up Internet enterprises,the paper puts forward the idea of improvement for all the above factors;and uses linear regression method to correct the risk coefficient,adjusts the income forecast of the case company based on the industry development data,quantifies the business model by the fuzzy comprehensive evaluation method.Finally,according to the improvement of the above factors,the paper re-evaluate the case company to get the improved equity value of all shareholders,and analyze the results.