Reasearch On Valuation Method Of Startup Internet Company

In the past 10 years,internet companies have made remarkable achievements in both growth rate and technological innovation,with Internet companies have 7 seats in the top ten global market capitalization companies in 2018.Microsoft is still in the rankings compared to the top ten companies in the world by market capitalisation in 2007.The rapid rise of mobile internet in recent years has prompted Internet companies to carry out more frequent capital movements such as financing and mergers.In contrast to the trend of rapid development of internet companies,the traditional valuation methods have limitations,and it is often difficult to accurately evaluate the user's value of Internet enterprises.How to choose a suitable valuation method for value evaluation according to the characteristics of Internet companies is still an academic problem.This article studies the applicability and limitation analysis of the valuation method of the enterprise by PE Investment Institution under the rapid development trend of the Internet industry,and makes a qualitative and quantitative comparison of various methods in the form of T company case,and selects more suitable valuation methods and results synthetically.In this article,the comparative analysis method and sensitivity analysis method are used to analyze the relevant research,and the relevant conclusions are drawn.In this article,the qualitative analysis of valuation method selection from the point of view of limitation,and the quantitative analysis of valuation results from the angle of deviation degree.It is considered that the calculation premise of absolute valuation method(DCF method)is more hypothetical.The impact of its valuation results on the discount rate is more sensitive,and better valuation results can be achieved through the calculation of the rate of return necessary for the project by the investment institution.The calculation process of relative valuation method is simple,but the financial data of start-up internet companies lag behind the actual business,which makes them tend to underestimate the valuation of enterprises,and the results obtained by Dynamic PS valuation method are more accurate.Traditional valuation methods tend to ignore the value of user traffic in Internet companies,resulting in inaccurate valuation results.When the Metcalfe law valuations enterprises,there is a lack of quantitative analysis models.In this paper,the model is improved by introducing Zipf s Law and single user contribution value index,and the results are more accurate.The conclusion of this article is that the improved Metcalfe Law model can calculate the valuation of the enterprise in T company case based on the active quantity of the user and the income data of the user,and make the valuation calculation of the Internet enterprise more reference significance from the angle of the micro-business dynamic Data.When the traditional valuation method is used to value Internet enterprises,in the case of industry comparable companies,the dynamic market ratio method in relative valuation method should be preferred,and in the absence of comparable companies,the DCF method should be adopted,and the discount rate should be defined from the investment rate of return necessary for investment institutions.The innovation of this article are as follows:(1)on the basis of active user indicators,ARPU index is introduced to improve the Metcalfe law valuation Model,and(2)the non-financial valuation of the enterprise is quantitatively analyzed by using the market value of the company's historical financing.