Application Research On The Valuation Of IT Enterprise

With the coming of knowledge economy and appearance of a large number of IT enterprises, how to evaluate the IT enterprises becomes a new question for discussion in the. As a new kind of enterprise, IT enterprises not only have common characters of the traditional enterprises, but also have lots of differences with the traditional enterprises. Therefore it is necessary to survey the meaning of IT enterprises again and look for some valuation approaches suitable for IT enterprises. Valuation plays a very important role in investors' investment analysis, mergence between enterprises, corporate finance and so on. The settlement of the valuation issues of IT enterprises will provide the technical prerequisite for solving the financing problems of IT enterprises and for the healthy development of the securities markets in China.Firstly, the paper made a summary of research background and practical significance of the valuation of IT enterprises, then introduced the current research situation in the field of enterprises evaluation and proposed the research object, research aim and technical route. Secondly,the paper analysed the characteristics of IT enterprises with the combination of lifecycle. At the same time, according to the characteristics of knowledge-intensive, high-input and high output, high risks and high development speed and obvious development stage of IT enterprises,we proposed the characteristics and difficulties of the valuation of IT enterprises and pointed the difference of the valuation of IT enterprises compared with traditional enterprises. On the basis of limitations of current IT enterprises valuation appoarch,we pay attention to the characteristics of IT enterprises,who include existing value and potential profitability. Then this paper mainly introduce traditional valuation method. This section mainly discussed how to confirm and test parameters of discounted cash flow method and Option Pricing Model,besides,then researches the practicability of the model.Finally,we use the new model to go on with case study to prove whether the new method is proper for the valuation of IT enterprise. On this base, we discuss some problems related to the use of new valuation method and analyse the limitations and application of this new method.