The Application Of DCF Model In The Valuation Of A-Share Internet Companies

As an emerging industry,The Internet industry’s growth and maturity performance is a great challenge to the valuation of the company’s value,which makes it particularly important to choose a reasonable enterprise valuation model.In the value evaluation of Internet companies,some research scholars have reservations about the use of the traditional DCF model assessment on companies that are growing rapidly in the internet industry such as Netsun.Based on the achievements of previous scholars,this paper starts from the aspects of valuation theory of corporate value,marketing,financial management,and non-financial factors.The DCF model,which has obvious advantages in traditional enterprise valuation,is used to evaluate the value of a-share Internet companies.This paper fully considers the difficulties of applying DCF model to analyze Internet companies.Based on the theory of theoretical income multiplier analysis,a new solution is proposed to determine the revenue growth rate of Internet companies.Combining the case analysis of “Netsun”,the paper shows the whole process of value evaluation based on the DCF model and hopes to use this case to provide useful references and suggestions for the valuation of traditional Internet companies and other new industries in the “Internet+”.