The Value Evaluation Of Internet Enterprise Based On Real Option Theory

With the rapid development of science and technology and the rise of knowledge economy,more and more enterprises are entering the field of internet.At the same time,with the advent of internet companies,listed financing,mergers and acquisitions,as well as the pursuit of venture capital and other economic activities are becoming increasingly frequent,more and more people pay attention to the valuation of internet companies.However,internet enterprise is different from the traditional enterprise in terms of value evaluation,the valuation of internet company has its own particularity.The traditional method plays an important role in the valuation of enterprise,but it has obvious defects for the valuation of internet enterprise.Internet companies are highly risky,and this risk will make the future earnings of enterprises uncertain,so the value of internet companies not only includes the value of corporate physical assets,but also includes the potential value of the option.The real option holds that the high uncertainty in the enterprise can bring the option value to the enterprise.This theory agrees with the characteristics of internet enterprises.Therefore,the author thinks that the real option model can be applied to the value evaluation of internet enterprises,so as to realize the integration of real option idea and enterprise value evaluation.Based on the analysis of the particularity and value of internet enterprises,this paper argues that the value of internet companies is different from that of traditional enterprises.It is pointed out that the value of internet enterprises is composed of two parts,namely physical asset value and potential option value.Afterwards,this paper reveals the limitation of traditional valuation methods to introduce the theory and method of real option.Using the case analysis method,the paper computes,analyzes and validates the overall value of the internet Company-OurPalm Technology,and hopes to provide good decision-making guidance for decision-makers and investors of the enterprise.Through the study,the author draws the conclusion that the real option method can reflect the value of internet enterprises more rationally and truly.