Research On Phased Valuation Model Of Unlisted Internet Enterprise Based On Compound Real Options

With the penetration of Internet technology into every aspect of social life,some Internet companies have won the favor of a large number of investors with their leading technology strength and unique business model.Their valuation logic is very different from the traditional valuation methods.Today,some large loss-making companies can still raise hundreds of millions of dollars.But with the emergence of Unicorns,investors are also constantly worried about the collapse of the valuation bubble.For Internet companies-especially unlisted Internet companies,we urgently need a valuation method worthy of reference.However,the traditional net present value valuation method based on the free cash flow discounting and the relative valuation method represented by PE,PB and so on are often ineffective in valuing the unlisted Internet companies.The real option method for high-risk project valuation is more suitable for the valuation of the Internet business in the seed stage and the growth.Real options draw on the idea of financial options,the valuation of objects from financial securities to physical assets extended to fully reflect the risk of the underlying assets.Combined with the characteristics of private placement financed several times before the listing of Internet companies,this study applies the composite real option method to the multi-stage financing valuation of Internet companies before listing,and puts forward different suggestions according to their development characteristics and risk characteristics in different periods solution.The results show that the composite real option valuation model can not only better reflect the realistic characteristics of multi-stage investment,but also fully reflect the value brought by the uncertainty and management flexibility.