A Research Of Valuation Of Internet Company In M A Based On Risk Adjusted EVA

With the rapid growth in internet industry,the competition in this industry is more and more intense.In recent years,more and more acquisitions and mergers have occurred in this industry.How to determine a reasonable and attractive transaction price becomes an important question for the both sides.This thesis chose the valuation of internet company in M&A as the topic and tries to improve the accuracy of valuation of internet company and achieve the win-win situation.Firstly,this thesis summarized the research results of M&A of internet companies,valuation of internet companies and EVA.This thesis had the idea that EVA could be used in valuing the internet companies,but it should be improved to reflect the value of risk which is burdened by internet companies.Secondly,it introduced concepts of internet company and internet industry,theory of valuation and the common methods used in valuation.Then,this thesis designed the risk adjusted EVA model based on the original EVA and completed the whole valuation model.In next part,the valuation model was used to calculate the value of CTIRP and it found that BAIDU spent a lower cost,but obtained a higher value of CTRIP's shares.And considering the synergistic effect and other factors,we thought that the consideration paid by CTRIP was in the reasonable range.Finally,this thesis formed the opinion that risk adjusted EVA is feasible in valuing internet companies and it has the space to be improved.