Research On The Estimation Of Electronic Business Platforms Based On The Relative Value Assessment

Along with the Internet + concept win public feeling deeply,the Internet has become an important tool which can stimulate the whole trade development.Our Internet economics already connects with the world against the background of globalization in order to bring development opportunities for all the Internet economy.E-commerce is a representative form of Internet economics and is the earliest pattern of Internet business,which now already develops into an important component of Internet economics.By the end of 2017,China’s network shopping transaction scale reached 6.1 trillion yuan,which is up 29.6% from 2016.In 2017,the number of online shoppers reached 530 million,which is up 14.3% from 2016.The number of online shoppers accounted for 69.1 percent of the total number of netizens.More remarkable,online shopping amount continues to maintain rapid growth.In 2017,trading volume reached 7.18 trillion yuan,which is up 32.3 percent from 2016.Thus it can be seen that Chinese network shopping transaction scale is getting bigger and bigger and the Internet economy is growing faster and faster.New era e-commerce platform companies not only flourish in the developed cities,they can also develop into the developing city and villages.With the popularity of smart phones,the rapid development and popularization of mobile Internet will embrace a brighter future of the electronic commerce enterprise.For the moment,the development mode of electronic commerce has changed gradually.On the one hand,the used way of propagating and transmitting information for casting a wide net has been converted to accurately forecast customer demand which use the Big Data Technology.On the other hand,electronic commercial enterprise also pay more attention to their own logistics and after-sales service,which gradually forms a stable ecosystem of e-commerce platform companies themselves.In this economy,accurately assess the value of an e-commerce company not only can help these electronic commercial enterprise find out self-positioning to adjust development strategy,but also can prevent the ecommerce industry forming an oversize bubble.Therefore,accurately assess the value of an e-commerce company is so important for the development of ecommerce industry.Because of the particularity of electronic commerce,most e-commerce platform companies have the characteristics of light assets.There are very few physical assets like buildings,land and equipment.There are lots of intangible assets such as software technology and brands,which is quite different from the status of asset allocation of most traditional manufacturing enterprises.At the same time,the process of creating value for e-commerce platform companies is also different from that of traditional enterprises.In the process of creating value of the e-commerce platform companies,the core resource is the registered customer groups.E-commerce platform companies use publicity to guide registered customers to consume,such as advertising,promotion and customer services.This way can convert the accumulated number of customers into corporate profits,which is unlike traditional manufacturing enterprises.Traditional manufacturing enterprises create profits by producing products through assets and manpower.Finally,most e-commerce platform companies have a long period of development and accumulation.During this period,they have to spend a lot of money to develop software products and cultivate customer groups.They have to face difficult problems,such as low income,a lot of research and development costs and promotion cost.They are even short of operating cash flow and need capital investment to make a living.It is precisely because of the above characteristics of e-commerce platform companies,traditional enterprise value evaluation model cannot connect with the e-commerce platform company’s business chain,as a result of the e-commerce platform company’s initial long period of losses which cannot gain cash flow.So it cannot be able to effectively evaluate the value of e-commerce platform companies.Therefore,this paper will do research into e-commerce platform companies,analyze the characteristics of ecommerce platform companies and point out that the traditional valuation technology does not apply to the valuation of e-commerce platform companies.Combined with the existing e-commerce platform company valuation theory,this paper will propose a valuation model that can meet the valuation needs of ecommerce platform companies--the relative value assessment.This valuation model can be used to evaluate the market value of e-commerce platform companies by quantifying the indicators of e-business platform companies in the operation,customer,after-sale service and growth ability,in order to provide reference information about the investment and decision of the e-commerce platform company to the information demander.The article is divided into six parts.The first part mainly introduces the background and significance of the research,expounds the frame and content.This part points out the importance about accurately evaluating the value of ecommerce platform companies in the current economic situation.The second part analyzes the way and realization mode of the value source of the e-business platform combined with the characteristics of e-commerce platform companies at present.This part points out that it is remarkably different between e-commerce platform companies and traditional manufacturing enterprises,such as the asset allocation status,production and operation chain and the corporation lifecycle.The value-creating process of e-commerce platform companies is different from traditional manufacturing enterprises.Therefore,the value assessment of ecommerce platform companies needs to pay more attention to their customer resources instead of income and profit.The third part expounds the basic principles of the current traditional valuation theory which is relatively accepted,includes DCF model,dividend discount model and relative valuation method.This part analyzes the limitations about calculating the value of the e-commerce platform company by used traditional enterprise valuation theory.Combined with the existing Internet valuation theory,introduces the existing relative value assessment and suggests Improvements about selecting a comparable company and multiplier factor.The fourth part mainly introduces the case.By introducing the business model,development history and development Status of the case company—Pinduoduo,pints out the company as a reason for the case.Pinduoduo’s business model is representative of the e-commerce platform company.It has a large scale business which is the leading status.It’s a public company and easy access to data.The fifth part is the case company value calculation.This paper,by selecting a comparable company group,measures multiplier factor,establishes a data model and calculates its theoretical value by using Pinduoduo’s open data.Then this part will verify the effectiveness of the relative value assessment and combine the calculation with the Pinduoduo’s business valuation in the secondary market.The last part points out the contribution and deficiency of this paper and puts forward the prospect and thinking of the company valuation of e-commerce platform.This article uses case study.On the one hand,this article establishes a relative value assessment for e-commerce platform companies based on the traditional valuation model of relative value by using theoretical analysis.On the other hand,this article veritably simulates the application process of the model by using new valuation model which calculates enterprise value of Pinduoduo IPO in 2018,and analyzes the effectiveness of the relative value assessment by contrasting data,which has a strong reference significance.The shortcomings of this paper are as follows.First,when we need to consider the drivers of enterprise value,we use a limited number of parameters of the relative value assessment for e-commerce platform companies,which cannot completely simulate the creation process of enterprise value.Some other factors were neglected.The result cannot fully meet the true value of the enterprise.Secondly,Valuation method in this paper is for these e-commerce platform companies which use customer resources and ecommerce platform,which business model is B2 C model.With the development of Internet economy,new e-commerce platform companies and new business models will spring up,whether this model is applicable needs further research in the future.