Exploration On Valuation Factors Of Online Game Companies

Since entering the new century,with the popularization and promotion of computers,mobile devices,the Internet and mobile Internet technologies,The game industry has gained a fast-growing soil.The domestic market has experienced a subversive process from scratch,from superior to excellent,from client to mobile,from foreign imports to exporting abroad.The scale of the market has grown from 26.3 billion yuan in 2009 to 214.4 billion yuan in 2018,has grown more than seven times in ten years,the market stock of online game products has reached tens of thousands of types.With the rapid growth of the industry,the corresponding capital flows also become increasingly active,such as equity venture capital,IPO,mergers and acquisitions,sales,back-door listing,etc.At present,the industrial economy and capital market are developing in full swing,establish a set of valuation methods that can promote the healthy development of industry and capital market to avoid excessive valuation dampening the activity of capital market and excessively low valuation hurting industrial development.It is an urgent problem to be solved in practice.However,when using traditional valuation methods to value online game companies,they fell into a predicament that was difficult to be solved.The assumptions of the conditions and factor selection for online game companies are very different from those of traditional industries.The current valuation of the online game industry is mainly based on traditional valuation factors and methods and corresponding corrections,but it seems that there are some deficiencies in the consideration of the online game industry’s own operating characteristic and valuation factors.In this regard,this article will start from the traditional valuation factors and methods,learn and draw on the results of valuation research of the Internet industry and the online game industry,combine the characteristics of the online game industry itself to propose the valuation factors that more accord with the online game industry.And based on the investment business practice of T company,summarizing the value judgments of online game companies at different stages of development,the valuation factors and the weight relation between the factors need to be considered.This paper believes:The value of assessment of online game companies should start from the business characteristics of the industry,start from the starting point of the business,start from the core team,start from the game products.The valuation factor should focus on factors such as the producer,the core team,the user’s stickiness of the product,the quantity and quality of the user,and the commercial conversion capability of the product.