Internet Enterprise Value Assessment Based On Residual Income Valuation Model

With the innovation of information technology,China's industrial structure adjustment and upgrading,the rapid development of the Internet industry has deeply affected the economic development.Whether it is the Internet related business investment,financing,or the merger of the Internet business,the acquisition,the demand for the valuation of the Internet business is also growing.Because the traditional enterprise value assessment method has all sorts of limitations to the network enterprise value assessment.So how to assess the value of Internet companies,or to assess the fair value of the Internet business has become an urgent need to improve the assessment of the assets.In order to solve this problem,this paper is based on the analysis of the residual income valuation model,and further explore whether it can apply the residual income valuation model to assess the value of Internet companies.This thesis is divided into two parts,theoretical research and practical application.In theoretical research,the comparative analysis method is adopted.First of all,through the review of the relevant literature,and Internet companies in the Internet industry related information and data analysis.Secondly,the traditional evaluation methods are introduced,and the applicability of the traditional assessment methods and the reasons of the residual income valuation models are analyzed.Again,by studying the theory of residual income based,research on residual income valuation model,the advantage of Internet enterprise value assessment and its limitations,under the background of the characteristics of the Internet industry,of residual income valuation model is improved,and the model parameters are determined,and the residual income valuation model of piecewise,and the eventual establishment of two stages of residual income model for further research.Finally,as the focus of the theoretical research,the paper analyzes the residual income valuation method,and introduces the advantages of the residual income valuation model to the valuation of Internet companies.Theoretical research results show that the residual income valuation model can be applied to the evaluation of the value of Internet companies.The case study method is used in the practical application.People's Network Co.,Ltd.as a case,analyzes the prospects for the development of the network,respectively,using the residual income valuation model,equity cash flow model and market comparison method,comprehensive consideration of the enterprise's own predicted people's future financial data,to assess people's enterprise value.Based on the comparison of three kinds of assessment methods,through the theoretical study and practical application of results,the final conclusion,the residual income valuation method can be applied to the valuation of Internet enterprise,and other traditional evaluation methods are higher than the accuracy.