Research On The Value Evaluation Method Of Online Video Company

With the development of the information technology,the “Internet +” industry is subdivided into a great number of classes while in its rapid development.As a subdivision industry in the Internet industry,the online video industry has its own development scale and competition situation.In recent years,there are numerous online video companies listed or merged.In March 29,2018,iQiYi was listed on NASDAQ.The purpose of this paper is to study the valuation method for online video companiesBased on the literature review of Internet company value evaluation both from domestic and international,this paper first analyzes the development history and the current situation of online video companies.Then we summary the characteristics of online video companies,and study the factors that influence the value of online video companies.Secondly,according to the essential characteristics of value we analyze the limitation of the discounted free cash flow method in the income method and the value ratio valuation method in the market method in evaluating the value of the online video company.Then,combining the online video characteristics and the value influence factors,the DEVA value evaluation model,which embodies the user value driving factor,is improved.Finally,a case study is utilized to conclude that the improved DEVA valuation model can effectively evaluate the value of online video companies.The research finds that the online video companies have numerous characteristics such as the unpredictability of online video companies of the future profitability,the huge operating risks,the negative profit state,which make the original discounted free cash flow method and the value ratio valuation method are not applicable to evaluate the value of the online video companies. Through the adjustment of user value and the introduction of the business adjustment coefficient,the DEVA model is improved.By a case analysis,we know that compared with the traditional value valuation method,the improved DEVA value assessment model pays more attention to the contribution from users to company value.Moreover,compared with the original DEVA value assessment model,the improved DEVA value assessment model is more suitable and abundant in theoretical basis and parameter selection,and more accurately reflects the value status of the online video companies.