Internet Enterprise Value Evaluation Based On LSTM And Real Option Model

Under the background of the rapid development of China's economy,with the booming development of the Internet industry,Internet companies have also developed rapidly.At the same time of development,not only are there more and more property rights transactions between Internet companies,but companies in other industries also have more or less M&A transactions with Internet companies.How to make a reasonable and truly corporate value in corporate mergers and acquisitions has become a concern for people.Compared with traditional enterprises,Internet companies have significant characteristics,such as intangible assets and non-financial indicators,and most of them use traditional evaluation methods for value evaluation.However,traditional assessment methods,such as cash flow discounting and EVA methods,as well as costing methods,have significant limitations in their use in Internet companies.While applying the real option method to enterprise value assessment,although it can well estimate the high uncertainty in enterprise project investment,using some innovative methods to optimize the parameter estimation of real option method,it still can't solve the practical application of real option.There are some problems that deviate from the theoretical factors.With the continuous development of the global economy,computer science and technology have long been widely used in people's lives.Computer science and technology has its powerful computing processing capabilities and fast search capabilities,meeting the needs of many technological developments,and has more and more close links with other science and technology.At the same time of the development of computer technology,it also provides technical support for enterprise value evaluation.The use of neural network for enterprise value evaluation is a trend that conforms to the development of the times.Moreover,Long Short-Term Memory(LSTM)is an improved and evolved cyclic neural network.It is more accurate in data processing.It is a new breakthrough to combine LSTM and real options for enterprise value assessment.This paper selects a typical Internet company for empirical analysis,and uses LSTM neural network to pass the five important parameters affecting real options through the input layer to the implicit chain's circular chain structure,using the tanh activation function to process the non-input variables.The linear problem,then the output value of the target value is output to the output layer,and the historical data is used as the training sample to improve the accuracy of the output result.The results are compared with the traditional B-S model results to verify the applicability and feasibility of the model.The use of computer science and technology for enterprise value assessment may be a future development trend.Its powerful computing processing capability and fast search function solve many data processing problems in enterprise value assessment.The combination of LSTM and real options for Internet enterprise value assessment is also a new breakthrough,enriching the enterprise value assessment method system.