The Value Assessment Of SQ Company Based On Modified DEVA Valuation Method

With the progress of popularization of computers and the advent of the information age,Internet has become an indispensable part of people's life.and has changed people's living habits and working methods.Meanwhile,it has greatly stimulated the development of Internet economy.Under this background,there are many Internet enterprises that rely on high and new technology and innovative business models in our country.And its activities in the capital market are frequent increasingly.The capital operations including mergers and acquisitions are more and more normal.The biggest difference between Internet companies and other traditional enterprises is that Internet companies are mostly in the period of rapid growth.They need large amounts of capital investment in the early stage,and there are few or almost no book gains,and future earnings also have great uncertainty.Therefore,with consideration of the current situation and economic characteristics of Internet industry in China,it is also accompanied by the characteristics of high growth and high risk.Based on the above research background,this article will study the valuation methods of Internet enterprise at initial stage and developing stage on the basis of combing and referring to relevant theories,combined with the development characteristics of Internet enterprises.Firstly,this paper introduces the applicability of traditional enterprise valuation methods based on financial indicators,briefly analyzes the characteristics and valuation difficulties of Internet companies,which are different from traditional enterprises which lays the foundation for the selection of valuation methods for Internet companies.Secondly,Combining the characteristics of Internet enterprises,this paper selects the DEVA valuation model which is more suitable to the development model of Internet enterprises.The improvement of the DEVA evaluation model is divided into three aspects,including affirming the nature of Internet users,correcting the relationship between the user and the enterprise value and Introducing new parameters.Lastly,taking SQ Company as an example,after comparing the results before and after the modification and analyzing the reasons for increased results to prove the validity of the modified DEVA model,the paper concludes that the new method is reasonable and reliable.This paper studies the value evaluation model of Internet enterprise from the angle of user value,hoping to enrich and deepen the existing value evaluation theory,and provide some reference for the value evaluation of Chinese Internet enterprises.