Research On The Application Of Internet Unicorn Enterprise Valuation Method

Internet unicorn enterprises have novel business models,high growth and other characteristics,so they are favored by the majority of investors,and often can achieve multiple rounds of financing in a short period of time to successfully go public.However,after the listing of Internet unicorn enterprises,there are frequent breakouts.This not only violates the investment expectations of investors,but also brings losses to investors.It also raises questions about the virtual high value of Internet unicorn enterprises in the market.How to make a reasonable valuation of Internet unicorn enterprises has gradually become the focus of investors and the market.However,the overall development history of Internet unicorn enterprises is relatively short.In addition,unicorn enterprises have valuation difficulties such as unstable profits,short duration,and lack of comparable companies in the market.Traditional enterprise valuation methods are difficult to make reasonable valuation judgments.Therefore,the main content of this article is to judge the overall development status of enterprises by combining life cycle theory,and select appropriate valuation methods based on this to conduct a reasonable valuation of the enterprise.At present,the commonly used valuation method of asset appraisal institutions is the combination of asset based method and income method.This paper also selects the valuation method applicable to enterprises in different development stages by combining the life cycle theory and the characteristics of enterprises in different development cycles.In this paper,Pinduoduo is selected as the case study object,and according to the current business model and cash flow characteristics of the enterprise,it is judged that the enterprise is in the growth period of rapid development.Based on the above analysis,the P/GMV method and real option method are the most suitable valuation methods for Pinduoduo,which is currently in the growing period.Therefore,this paper applies the P/GMV method and the real option method to value the enterprise,and also uses the asset based method and the income method commonly used by asset appraisal institutions to value the enterprise.By comparing the market value on the base date with the enterprise valuation results calculated by different methods,we find that the valuation results obtained by the traditional asset based method,income method and P/GMV method are significantly different from the market value on the base date,while the valuation results obtained by the real option method are the closest to the market value on the base date,which indicates that the real option method is highly applicable to Pinduoduo.Research has found that traditional valuation methods are prone to overestimating or underestimating the overall value of enterprises,and therefore are not suitable for internet unicorn enterprises.In addition,there may be significant differences in the valuation results obtained by different enterprise valuation methods.If only a single valuation method is used to value the enterprise,it may reduce the reliability of the valuation results.Combining different valuation methods to value the enterprise will effectively reduce valuation errors and improve valuation accuracy.Although the valuation results can provide some reference for investors,we also need to dynamically judge the accuracy of the valuation results and make cautious and reasonable investments.