Value Evaluation Analysis Of Internet Unicorn Enterprises Based On User Resources

Unicorns are a new concept that has emerged only in the last few years,and since then have received a lot of attention in various fields around the world,especially in the fields of technology and investment.Since the 1910s,China has also seen the emergence of a large number of unicorn enterprises,the number and overall estimated value of enterprises are about to match the United States.But as more unicorns have emerged and gone public,holes in their valuation have become increasingly apparent.Due to the unique nature of unicorn enterprises,for example:First.The development speed of unicorn enterprises is very fast compared with traditional enterprises,and there is no enterprise that can be referred to;Second.The proportion of intangible assets in the total assets of the company is much higher than the proportion of physical assets;Third,the company highly younger,lack even the operations of the past for reference,and the traditional way of evaluation is to use the past financial data to the enterprise value,resulting in the valuation using traditional way can exactly estimate the unicorn enterprise real value,and shareholders tend to unicorn of emerging enterprises "go with the flow" attitude,which creates a unicorn enterprise market value highly frothy,as listed in 201 8 unicorn enterprises,industrial union,after the listing price shocks all the way down,from the IPO to break only 4 months time.And there are plenty of unicorns out there that have had similar experiences,and many investors,seeing their demise and remembering the glory of their IPO days,will no doubt wonder whether they are seriously overvalued.Therefore,how to evaluate the value of unicorn enterprises scientifically and effectively is a question worth further discussion.Based on the domestic and foreign literature and the development characteristics of unicorn enterprises,this paper first discusses the obstacles they encounter in the value evaluation and the bottlenecks they may encounter if the traditional evaluation method is adopted.Then introduces the Metcalfe valuation model based on user resources of basic theory,demonstrates the effectiveness of unicorn enterprise valuation on the Internet,and highlight some non-financial factors(such as:user resources,market influence and other factors)on the impact of Internet unicorn enterprise valuation,on the basis of these non-financial factors to build a value evaluation model applies to the emerging industries;Finally,the case of XiaoMi group is introduced to verify whether the new model proposed before is effective,and the traditional revenue method,which has been widely used,is selected to compare and analyze and verify the results.It can be seen from the final results that the valuation results obtained by Metcalfe valuation model based on user resources are closer to the market value of the company,while the values obtained by the traditional valuation model based on income method are somewhat different from the market value.This paper consists of the following four parts:the first part is the introduction.The second part is the theoretical analysis and model construction of unicorn enterprise valuation.The third part is the case analysis of XiaoMi.The fourth part is the result comparison and conclusion of different evaluation methods.The main methods used in this paper are literature research method,comparative analysis method and case study method.The innovation of this paper lies in that it is different from the traditional valuation method to the valuation of unicorn enterprises,and a new valuation model of unicorn enterprises is constructed from the perspective of user resources.Through some research and analysis,the following conclusions are drawn:because unicorn enterprises have very different characteristics from traditional enterprises,they should adopt different valuation methods to adapt to the development of The Times.For unicorn enterprises with short establishment time and low profit level in the early stage of development,the traditional forecast and valuation based on financial data should be abandoned.Instead,the value should be evaluated based on user resources,market position and enterprise liquidity as the driving factors of enterprise value.The basic content of Metcalfe’s law is highly consistent with the particularity of unicorn enterprises and the business model and core source of value of XiaoMi group.Clear based on the above background,this paper analysis the related parameters of Metcalfe law valuation model,as a case study of millet group found that after verification,the valuation model based on Metcalfe’s law on the Internet the unicorn enterprise valuation has more applicability,by the results of this principle to draw closer to the enterprise’s market value,at the same time,the validation is further improved in China unicorn enterprise valuation theory is proposed.At the same time,this paper puts forward two Suggestions on the current valuation of unicorn enterprises.First,when assessing the value of unicorns,we should look beyond historical financial data.This is because the strategy of many companies in their early years is to increase the market share of their products.Therefore,in order to seize market share,there may be a lot of costs,such as labor cost of employment,cost of sales,etc.Such non-financial factors have a relatively deep impact on the valuation of unicorn enterprises,which may be deviated from the results obtained by the valuation method that only focuses on financial factors.Second,when evaluating the value of these companies,we should pay more attention to the number of"non-zombie" users and whether the number of users has increased or decreased.Because although many unicorns do not generate significant profits in the initial stage,and some even have negative profits,they have many loyal customer resources at the beginning,and customers are the most important resource for Internet unicorns,which is the source of most of their revenue.