Internet Enterprise Value Evaluation Research Based On Real Option Method

With the advent of the Internet age,Internet companies' economic activities such as listing financing,venture capital,mergers and acquisitions and so on occur frequently.Since the industry of Internet is quite different from traditional industries,its future development is uncertain while non-financial factors have a great influence on future value.Therefore,we need to choose a value assessment method which can suit the characteristics of Internet companies.The purpose of this paper is to apply the real option theory to the value evaluation of Internet companies,while consider the impact of non-financial factors on the value of Internet enterprises,thereby enriching the theory and methods of enterprise value evaluation.This paper adopts the methods of combination of quantitative and qualitative,theory and practice,literature and model,selects an Internet enterprise "Shunwang Technology" and divides the enterprise value into existing value and potential value.The existing value is discounted by future cash flow and the potential value is evaluated by the BS model based on real option theory,while the non-financial factors such as user loyalty,brand influence,and operator management mode are introduced to adjust the potential value.After comparing the results of the evaluation of the case company with the real option method adjusted by non-financial factors and the market value of company's base date evaluation,the difference between the two is within a reasonable error range.Therefore,the real option method under the adjustment of non-financial factors has far-reaching significance in assessing the value of Internet enterprises,and can provide more realistic and reliable basic data for the decision-making of management.