Research On The Value Evaluation Of Internet Enterprises Based Onmetcalfe’s Law

With the continuous development of Internet technology,mankind has entered the 5G era,various Internet companies have emerged,and Internet products and services have begun to enter all walks of life.The importance of Internet companies has become more prominent,and the fast-growing Internet industry has begun to be favored by investors.It is very necessary for stakeholders in the capital operation process to use scientific and appropriate methods to evaluate the value of Internet companies.In the context of the rapid development of the Internet,live broadcast companies have gradually stood out from all kinds of Internet companies.In 2016,the live broadcast industry ushered in a blowout development and capital has entered the market.The live broadcast content is all-inclusive,covering shows,games,sports,education,e-commerce,etc.,and has become an important part of our country’s economic development.With the successive listing of live broadcast companies such as Huya and Douyu,etc,it is very important to make a reasonable assessment of their value.Based on the above background,the paper firstly sorts out the relevant theories and researches of domestic and foreign scholars on enterprise value evaluation.Secondly,by analyzing the characteristics of Internet enterprises,the valuation difficulties of Internet enterprises are summarized,and the shortcomings of traditional value assessment methods in the value assessment of Internet enterprises are analyzed.Then the Metcalfe’s Law is drawn out,and analyze its implications,controversies,and usability,and the Guotai Junan model proposed based on the Metcalfe’ Law is revised to construct an Internet enterprise valuation model.Finally,Huya,as a leader in game live broadcast industry,was selected as the research object.By introducing the company’s profile,it analyzed HUYA’s valuation difficulties and the applicability of Metcalfe’s Law to HUYA.The EVA valuation model and the revised valuation model are used to evaluate its value,and the conclusion that the value of Huya’s enterprise is overvalued is drawn,And by comparing the evaluation results of the two methods,it is confirmed that Metcalfe’s Law has better applicability.At last,the problems that limit the growth of its enterprise value are analyzed and corresponding suggestions are given.