Research On Valuation Method Of Internet Unicorn Enterprise

With the further development of Internet platform,"Unicorn" enterprises emerge on a large scale.Technological innovation and e-commerce bring the Internet "Unicorn" into all aspects of national life and economy,which has gradually become an important driving force for China's high-level economic development.Compared with traditional enterprises,Internet Unicorn enterprises have the characteristics of customer-oriented,technology-based,strong ability of financing and borrowing.The traditional valuation method is an important pillar of the valuation theory.However,due to the difficulties of unprofitable,unstable cash flow,short existence history and no comparable company,the applicability of traditional valuation methods is limited for the valuation of the Internet Unicorn.At the same time,the operation of Internet Unicorn Enterprise is at high risk,which leads to the uncertainty of the future profit of the enterprise.Therefore,based on the characteristics,evaluation difficulties and value composition of the Internet Unicorn Enterprise,this paper proposes that the enterprise value consists of two parts: the present real asset value and the potential option value.The real option method is more suitable for the valuation of this kind of enterprises.This paper introduces the theories and methods related to the traditional enterprise valuation and real options,on the basis of fully considering the applicability of each valuation method and the particularity of Internet Unicorn Enterprise,combining the traditional discounted free cash flow model with the real option model considering dividend payout,and using George Kingsley ZIPF's law to further adjust the parameters of the real option model,to construct a valuation system suitable for Internet Unicorn Enterprises.Then,using the case analysis method,this paper estimates and validates the total value of Coo Tek,a newly-listed Internet Unicorn enterprise in 2018,and the results of the other 18 Internet Unicorn enterprises value evaluation are verified,providing the good decision guidance for the enterprise related investor and the management.Through the research,we find that the modified real option model can reflect the value of Internet Unicorn more accurately and truly,and provide some reference for the evaluation of the new Internet enterprises in China.