Research On DEVA Model In Valuation Of Internet Enterprise

By the end of 2017,the number of Internet users in the world had increased from1.5 billion in 2008 to 4 billion.There are as many as 722 million Internet users in China.With the rapid development of the Internet economy,the capital operation related to the Internet industry is becoming more and more frequent.There is a growing demand for Internet valuation because of the proliferation of markets and even overseas listings.But traditional methods of corporate valuation have not been effective enough in the face of the Internet industry.Most Internet companies,especially those in their infancy,often face the dilemma of continuing to lose money or making unstable profits,and are often unable to use traditional methods for valuation.However,this part of the enterprises is an important part of the capital operation of the Internet industry.Therefore,how to make a reasonable and effective valuation of these enterprises has become a common concern of the owners and investors.This paper is based on Metcalfe's law and proves that the traditional valuation method is difficult to be applied to most Internet enterprises,and the limitation of the traditional DEVA model.By modifying the DEVA model,the paper introduces three parameters: the number of active users,the average contribution value per user,and the rate of payment.A modified DEVA model for Internet enterprises is obtained.The traditional income method and the modified DEVA model are used to evaluate and verify the validity of the model on YY,respectively.Finally,some problems and improvement suggestions are pointed out through the conclusion of the study.The potential research direction in the future is also given.