The Valuation Research On Internet Finance Enterprise

Since 2003,China's Internet finance industry has gone through multiple stages including vigorous development,risk explosion,and comprehensive supervision.After 2013,it is not uncommon for Internet financial companies to go public or enter the ranks of unicorns.At the beginning of the listing,the market often gave them valuations of over ten billion or even billions of dollars,but after experiencing a risk of thunder and policy strikes,the valuations of surviving Internet financial companies have shrunk sharply,and the market's impact on China's Internet Financial companies appear to be negative.Valuable and precipitous valuations seem to have become the norm for Internet financial companies.Today,investors seem to have doubts about the valuation of Internet finance companies.Based on this background,the core research question of this article is: how to value Internet financial companies.In case selection,this article takes China's very representative Internet finance company Zhongan Online as the case analysis object.First,the company was established in 2013 and listed in Hong Kong in 2017.It has basically gone through all stages of the development of the Internet financial industry in China and is highly representative.Second,as a listed company,relevant data of Zhongan Online is available.In terms of research ideas,this article starts with two aspects.First of all,the traditional valuation methods are sorted out,and their feasibility in the valuation of Internet financial companies is analyzed,and the best valuation methods for Internet financial companies are sought.Second,clarify the scope of Internet financial companies and conduct industry analysis to find the influencing factors of the value of Internet financial companies.Then,through case analysis of Zhongan Online,the research results are demonstrated.This article considers that: Internet financial companies mostly have the dual attributes of finance and technology.In terms of valuation methods,the segment and total valuation method can better evaluate the value of Internet financial companies,especially the technology value of Internet financial companies.More effective judgment.The traditional valuation methods often have the possibility of failure,misjudgment or underestimation.In terms of influencing factors of valuation,this article believes that the current profitability of most Internet financial companies in China is not stable.Therefore,from a financial perspective,we should focus on the scale and composition of business cash inflows.From a non-financial perspective,we should focus on the sustainability of business cash inflows,including the core competitiveness and risks of the segmented industries.Through case analysis,this article also finds that the current market mostly uses financial companies as comparable objects of Internet financial companies to perform valuation analysis on them.There is a risk of underestimation,and Zhongan online valuation analysis also proves this situation.In terms of innovation and significance,there is not much research on Internet financial valuation at present,and the use of valuation methods is also based on financial data and traditional valuation methods,which lacks consideration of the industry environment and characteristics.Therefore,this article has some innovations in the research industry,valuation methods and research perspectives.Although the research and valuation ideas in this article are relatively simple,they have strong practicability,allowing investors in the market to better understand Internet financial companies,and provide ideas for the valuation of Internet financial companies.