Research On The Value Assessment Of Internet Enterprises In Growth Period Based On Different Models

After more than 40 years of rapid economic development,the development of China’s capital market continues to reach new heights.At the same time,various high-tech and high value-added Internet enterprises seize the opportunity of development and play an increasingly important role in the Chinese market.At present,"Internet +" has been written into relevant government work reports,and related entrepreneurial activities are also developing rapidly.Therefore,how to carry out reasonable and effective valuation in different life cycles of Internet enterprises is not only the theoretical need to improve the evaluation system of Internet enterprises,but also the urgent need for economic development.Therefore,in order to study the valuation of growing Internet enterprises based on the different model,this paper mainly introduces the EVA model and the characteristics of growing Internet enterprises.Firstly,this paper introduces three basic valuation methods commonly used and the characteristics of Internet enterprises with different life cycles.And the three valuation methods are selected according to the development stage of the growing Internet enterprises.Then this paper focuses on introducing Baidu Company as the case of this article,and analyses the general situation of Baidu Company’s development and operation finance.Based on this,it can be concluded that Baidu Company is in a rapid development stage,which is in line with the characteristics of growing Internet enterprises.Finally,in the case analysis section,this paper chooses EVA valuation method to evaluate Baidu company according to the previous valuation method,and compares the valuation results of Baidu company with DCF valuation method and P/E valuation method.Thus validate the valuation method suitable for growing Internet enterprises.Through case analysis,we find that:(1)Baidu is in a period of rapid growth,with sufficient financial data and stable cash flow.Therefore,the results of financial data valuation are more accurate.(2)Based on the profit of Baidu Company,the EVA model takes into account the cost of equity capital and related intangible assets in the valuation process from the aspect of economic added value,and capitalizes the R&D cost of the enterprise reasonably,so that the valuation results can better reflect the development potential of Baidu Company.(3)The DCF valuation method is based on Baidu’s free cash flow,which conforms to the development characteristics of Internet enterprises in the growing and mature period,but ignores the industry characteristics of Internet enterprises and the impact of related intangible assets,thus making the valuation results low.(4)PEvaluation model uses industry average P/E ratio to evaluate the overall value of the evaluated enterprise.However,due to the overvaluation of the Internet industry in the whole industry,the average P/E ratio of the industry is higher,so the valuation results of Baidu Company are on the high side.Therefore,we should pay attention to the valuation of Internet enterprises in the growing period:(1)When choosing valuation methods,we should match the core driving factors of valuation methods with the characteristics of different life cycle stages of Internet enterprises.(2)A single valuation method can not draw accurate conclusions.It is necessary to consider a variety of valuation methods comprehensively and make valuation reference to each other.(3)For start-up enterprises,we should consider their non-financial indicators more.For growth and maturity enterprises,we should value the company more according to financial indicators.And EVA is more suitable for the valuation of Internet companies in the growing period.