Method Research On The Valuation Of The Mobile Internet Enterprise

Enterprise value assessment can help investors make reasonable investment decisions and play a central role in the strategic analysis.It also helps managers to improve the value of business.In the year of 2016,"network economy space" was first proposed in China's 13th five-year national economic and social development plan.The Internet industry has placed high expectations.With the continuous refinement of the policy implementation,China's Internet industry will expand a broader space for development combined with major opportunities for consumer upgrades.China's economy has facing a difficult transition since the year of 2008.The traditional industry has facing a crisis of excess capacity,and the Internet industry get the favor of the capital.Since 2014,the mergers and acquisitions of Internet companies are maintained at a high level regardless of quality or quantity.Mobile Internet has changed the traditional service and provided a bigger market.Mobile Internet companies' exist history is short and have little historical data.They are usually less profitable or even at a loss compared to other industries.It is difficult to value the mobile Internet company with the traditional valuation method.Therefore,it is important to study the valuation methods of mobile Internet companies and understand the value of target enterprises.The traditional enterprise valuation theory is based on the project which has been completed and the future earnings can be predicted,coupled with the imperfect of our capital market.So it is difficult to apply the enterprise valuation theory in specific industry,especially in emerging industries.This paper analyzes the characteristics of mobile Internet companies and the basis value of mobile Internet enterprises.And this paper points out that the existing valuation method can not reasonably evaluate the value of mobile Internet enterprises.It is necessary to innovate the valuation method.Customer value method linked customer value which is the most important asset to the Mobile Company with the value of the enterprise.And this paper analyses the ideas of the customer-based value model.Based on the customer value method,this paper uses the revised customer value method to value the XMG company.And the result shows that compared to XMG company's market value,the revised customer value method works well on the mobile Internet companies.Customer-based Valuation Method is a powerful complement to the existing valuation method.It can helps improve customer management and the customer value.At the end of the paper recommendations are provided to make the method of Customer-base Valuation works well.This paper also pointed out the limitations of Customer-based Valuation Method,hoping to specify the direction for future research.