A Research On The Application Of Residual Income Modelin Internet Enterprise Value Evaluation

The Internet industry has developed rapidly since the end of twentieth century to enter the Chinese market.The internet companies are springing up in recent years because of the “Internet+” economic model,which has innovative development model and can seize the core needs of customers faster than traditional enterprises.Then a series of market behavior,such as the expansion,mergers,restructuring and reform,must begin to emerge in large numbers.In this complex context,it is extremely important to evaluate the value of Internet companies scientifically and effectively to meet the growing needs of the community.However,the traditional enterprise value evaluation method cannot meet the demand of internet industry due to the high-tech nature of the Internet industry and the large proportion of intangible assets,and domestic and foreign empirical studies have shown that the net assets per share,earnings per share,accounting accruals and other financial statements contain a large amount of useful valuation information.Based on this,this paper uses the residual income model to study the Internet enterprise value evaluation method.This paper is divided into two parts: theoretical research and empirical case analysis.First of all,a large number of domestic and foreign research literatures about the Internet industry value assessment and residual income model are analyzed in detail,then explore the applicability of the residual income model in the Internet enterprise value assessment application on the basis of the characteristics of the Internet industry,In view of the shortcomings of the model in practical application: the subjectivity of data prediction and the complexity of financial leverage because of the liabilities with interest,this paper divides the enterprise activity into operational and financial activities to build a new residual operating income model.After that,the DuPont financial analysis system is introduced into this model in order to simplify the model parameters and refine the forecast indicators,determine the assessment process.And then this paper conducted a empirical research through a specific Internet companies with the actual situation of the securities market on the model to determine whether the model has a application prospects in the Chinese market.Storm Group is selected as the empirical case,and the premise of model application is meet by adjusting the financial statements.The model parameters are analyzed and forecasted in combination with the macroeconomic situation,the industry status and the enterprise's own situation,then evaluate the enterprise value by using the improved residual income model and calculate the final value,after that,compare the result with the value of the securities market at the time of assessment of Storm Group and find that the difference is not big and have some reference.Finally,on the basis of the above research,this paper puts forward the conclusion that the improved residual income model is applicable in the Internet industry and put forward the deficiencies in the study.