Research On The Valuation Of Early-Stage Internet Companies

With the development of the Internet and the reform of the economic structure,produced many Internet companies in the market.By listing,mergers and acquisitions,financing and spin-off activities to participate in market competition.Type for early-stage internet companies,unlike traditional start-ups,it usually not large asset,and no more personnel,to form the innovation of business model mainly through a combination of the Internet to create value.Traditional enterprise value assessment theory and method in the application of limit,investors are more according to their own experiences and preferences to determine the value of enterprise,unable to make the enterprise value of the real,objective reflection,which makes a lot of early-stage internet companies equity pricing and transaction efficiency decrease,and the development of emerging economies and the transformation of the national economic development pattern formed the obstacle.In this paper,based on the existing literature,analyzed the main factors affecting their initial Internet enterprise value,mainly includes the following four aspects.One is the core team,the other is the technology advantage,the third is business model,four is the channel capacity,and on this basis,with L company as a case,to the question in the start-up Internet enterprise Value assessment is analyzed,with the introduction of Internet company valuation framework,make traditional methods in the start-up Internet enterprise value assessment of applicability is not strong problem solved,and the conclusion.First of all,the characteristics of start-up Internet enterprise value assessment,the cost method and discount cash flow method and the equity pricing method has carried on the comparative analysis,pointed out that the three methods for early-stage internet companies don't applicability;And the value of Internet companies by its users,node distance,and monopoly cashability premium decision;Second,the core team,technical advantages,channel capacity and business model and so on four aspects to analyze the influence of the start-up Internet enterprise value;Finally,the Internet based on start-up mode L company as a case,analyses the fundamentals of L company,according to the four factors on the limitations of traditional value methods and applicability are analyzed,and the introduction of Internet company valuation framework to improve the initial Internet enterprise Value assessment,etc.Last three conclusions:first,the early-stage internet companies,its enterprise value depends on its users,node distance,and monopoly cashability premium;Second,the introduction of Internet company valuation framework can make evaluation results more fair and reasonable;Third,assessment structure and fair structure has the similarity,which has strong reference significance.