A Case Study On The Value Evaluation Of Internet Enterprises

As the country attaches great importance to the Internet industry,the Internet industry is booming.The transfer of equity among different Internet companies,asset mergers and acquisitions,restructuring,financing and other economic services are more and more frequent.These economic behaviors are beneficial to the development of the industry and enterprises.Through development and competition,the survival of the fittest,companies can become bigger and stronger,seek listing opportunities,and the industry can develop in competition.The accompanying question is how to accurately assess the value of an Internet company and form a set of scientific and rational assessment methods.This has become a new topic.For the characteristics of Internet companies,it is of practical significance to make scientific and reaso nable judgment methods and to resolve the value of assessment.At the same time,it can ensure the sustained and rapid development of the Internet industry,and investors can also make more accurate investment judgments and investment decisions.Due to the characteristics of Internet companies with light assets,large non-financial factors,uncertain growth periods,and uncertain future prospects,the total value of Internet companies is difficult to determine.This has also become a difficult point for evaluation.First of all,this article makes a systematic review of the research status of domestic and foreign companies' value evaluation from the aspects of real option method and discounted cash flow model.The common methods of enterprise value evaluatio n include cost method,market method and income method.The applicability of the assessment of the value of Internet companies was analyzed.Secondly,this paper analyzes the unique survival modes,operating modes,word-of-mouth effects,and Matthew effects of Internet companies,and points out the difficulties in the evaluation.Based on the difficulty of the evaluation,it chooses to adopt the market method and profit for the case companies.The law and EVA methods are used to evaluate the value of Internet companies,and more appropriate assessment methods are selected through comparative analysis.Thirdly,this article analyzes the case of the Sochi network acquisition of Q ingguo Smart Mobile Co.,Ltd.Based on the analysis of the advantages of the case company's products and business,it uses revenue method,market method,and EVA method to calculate and evaluate the company's value.And compared the three methods,because the income method is the closest to the valuation report issued by the appraisal company,the highest stability,the least estimated data and other reasons,the final determination of the income method is more suitable for the company's assessment.Finally,a single-factor sensitivity analysis was conducted on the income approach,with respect to project value for changes in sales revenue,non-operating income,operating costs,and non-operating expenses(assumed ranges of variation are ±10%),respectively.The effect of a single factor sensitivity analysis was performed.Through the sensitivity analysis,it is concluded that the need to strictly control operating costs and strive to increase sales revenue is the main way to increase economic efficiency and further enhance the company's assessment value.However,the sensitivity of operat ing costs and non-operating expenses is relatively poor,and the impact on the evaluation value of enterprises is relatively smal,and it is not necessary to pay too much attention.