Research On Value Evaluation Of Internet Live Broadcast Enterprises

Since its birth in 2017,the Internet live broadcasting enterprise has grown rapidly,relying on the background of the Internet era and people’s travel restrictions during the COVID-19 epidemic.Especially after the merger of the two giants,Tiger Teeth Live and Fighting Fish Live,was suspended according to the anti-monopoly law,all kinds of capital saw hope and poured into the market in a large scale.Therefore,it is of great significance to study the value evaluation of Internet broadcast enterprises.However,compared with traditional enterprises,the value evaluation of Internet broadcast enterprises has the characteristics of prominent user value,obvious Matthew effect,weak connection between financial data and enterprise value,and few comparable enterprises in the market.These characteristics make the common Internet enterprise valuation methods have limitations when used for the valuation of Internet broadcast enterprises.Common valuation methods include:market method,real option method,cash flow method,EVA method,DEVA method,etc.Although these methods are widely used,they more measure the value of an enterprise when it has a mature comparable market and can refer to the cash flow of the past years.In view of these reasons,some common valuation methods are no longer applicable to the evaluation of the value of Internet broadcast enterprises.Therefore,it is necessary to explore an effective valuation method to accurately evaluate the value of Internet live broadcasting enterprises.This paper expounds and analyzes the theory of enterprise valuation and the specific characteristics of Internet broadcast enterprises,and explains the reason why common enterprise valuation methods are not applicable to Internet broadcast enterprises.Because the DEVA method has the thinking of user value on the one hand,and on the other hand,it has freed itself from the restrictions of traditional financial indicators on Internet enterprises,and established it as the method of valuation analysis for Internet live broadcast enterprises.However,the DEVA method also has some disadvantages,such as fuzzy user range,the relationship between parameters and enterprise value is no longer applicable to the current Internet broadcast enterprises,and the application of parameters is not comprehensive.Therefore,this paper modifies the DEVA model,modifies the measurement of user value and introduces the Matthew effect correction coefficient.At the same time,taking Tiger Teeth Live,an Internet live broadcast enterprise,as a case,we selected three time points horizontally and three other valuation methods vertically.After calculating the results,we carried out comparative analysis and found that the improved model was more reasonable and the valuation results were closer to the real value of Tiger Teeth Live.Through analysis,this paper can find that the modified DEVA model is more applicable to the valuation of Internet broadcast enterprises,and the results not only more accurately estimate the value of Internet broadcast enterprises,but also can provide investors and mergers and acquisitions with a more comprehensive understanding of the target Internet broadcast enterprises concerned,and also lay a foundation for the value evaluation of unlisted Internet broadcast enterprises.