Research On Enterprise Value Evaluation From The Perspective Of Real Options

Since the emergence of the Internet in the United States in 1969 and the introduction of China in 1994,the rapid development of the Internet has dramatically changed people's daily lives.The continuous development of the Internet has also spawned many Internet companies,and our lives and business models have undergone unprecedented changes with the emergence of the Internet economy.The emergence of this business model also represents the "Internet +" era Appeared,Internet companies have high returns,but the investment risk is too large and there are many uncertainties about future development.In this macro background,the research on the valuation methods of Internet companies has very important practical significance.This article first introduces the research results of real option theory and the theoretical research of real option method for enterprise value evaluation in Internet companies,and then introduces real option method and three more widely used traditional valuation methods,and analyzes these methods.Applicability and limitations,it was found that the traditional method of enterprise value assessment is suitable for those companies that have stable development and have certain benefits for future development.Evaluate the potential value of Internet companies,and the overall value of Internet companies includes existing and potential values.Therefore,this paper proposes to use the combination model of free cash flow discount method and real option method to evaluate the overall value of Internet companies Evaluation.This article selects Giant Networks as a case company.Its physical value is composed of the existing business of Giant Networks.The valuation method of this part uses the free cash flow discount method.However,the valuation method does not consider Giant Networks.It is a potential option value brought by having more intangible assets and investment projects.Based on this,if the free cash flow discount method is used to evaluate the corporate value of Giant Networks,the overall value of Giant Networks will be greatly underestimated.Therefore,this article will use the real option method to evaluate the potential value of Giant Networks.Through empirical research on Giant Networks,we find that the overall value of its valuation is compared with the market value at the base date of the evaluation,and the error rate is not more than 3.5 %,Its error rate is within the acceptable range,which shows that the use of a combination of the free cash flow discount method and the real option method toevaluate the overall value of Giant Internet companies can truly reflect the value of the company,so it is also necessary to The validity of the model was verified,leading to the use of free cash flow It is necessary to evaluate the overall value of Internet companies with a combination of volume discount method and real option method.