Valuation Study Of Listed Companies In Information Technology Industry

In current society,information technology has profoundly affected the way of doing business while changing our way of life,improving the efficiency and competitiveness of enterprises.In addition,the IT industry offers more possibilities for social development,such as intelligence,virtualization and networking.At the same time,the industry’s development also provides more value to society,such as supporting socioeconomic development,improving public services,and enhancing social efficiency.In recent years,China and the U.S.have become increasingly tense in international relations,with the U.S.promoting a technology war against China.Covering various fields such as autonomous driving,smart healthcare,smart finance,and aerospace,the IT industry has become a symbol of China’s comprehensive strength,associated with national information security and the modernization process with Chinese characteristics.Therefore,the development of the information technology industry is crucial to the development of society and is an important pillar of social development.China’s IT industry is developing rapidly,and this process is greatly facilitated by a strong network of R&D teams and the implementation of strategies such as "strengthening the country with talents".This paper demonstrates three valuation methods commonly used in the appraisal practice community,explains the development history and applicable conditions of the three methods,and demonstrates the shortcomings and limitations of the three commonly used approaches in the context of the composition of enterprise value in the Chinese information technology industry.The valuation analysis of the case company is carried out by means of an improved income approach model and an improved market approach,and the prediction process of each parameter of the valuation is refined in depth and the prediction results are appropriately validated to provide worthwhile opinions and ideas for the valuation practice.This paper introduces the principal component analysis method to correct the subjectivity of the screening of comparable companies to improve the market approach,and discusses the main points of difference of a class of information technology companies,and compares the case companies with industry benchmarks.In addition,a real option related method is introduced to improve the income approach to supplement the option value of the case companies due to the uncertainty of the industry,so as to obtain the overall value of the companies.Finally,the gray correlation method is applied to verify the reasonableness of the valuation prediction,showing that the improved model can increase the reasonableness and accuracy of the valuation.This paper uses a novel valuation model to comprehensively assess the overall value of the enterprise,and the model parameters are selected with novelty and universality.Through an in-depth analysis of the value sources of information technology enterprises and a comparative analysis of the results calculated by the improvement of two valuation techniques,this paper concludes that the traditional market approach and the income approach,the valuation results are significantly different from the actual situation.By improving the valuation model,the deficiencies in the valuation of information technology industry are well compensated.