Assessment Study Based On The Fcf Network Value Of Listed Companies

In 1990s, with the development of the Internet economy in large-scale, Internet enterprise such as Electronic Business Service and Internet Content Provider (ICP) sprung up as mushrooms. Then the economic behavior which was related with Internet enterprise, such as taking in investment in the stock market, purchasing the right of properties,came into being gradually. The market demands objective and impartial valuation of Internet enterprise so that the result can be referred to when a decision is made. So the research on Internet enterprise valuation has been produced. In recent years, the merger among Internet enterprises is surging, whether managers or investors hope to know the real value of Internet companies. But till now, the valuation of Internet enterprise has not formed a relatively perfect methodology.Therefore, based on the listed Internet companies, this article theoretically expatiates on the type, particularity of listed Internet companies and key factors, assumptions, principles and methods of Internet companies valuation. At present, the valuation method of Internet companies still exists significant dispute. This article takes advantage of the research results of our predecessors, then uses the traditional classical theory of the enterprise valuation of the FCF (Free Cash Flow) discounted theory for the listed Internet companies valuation, and adds some more according to the actual circumstances of listed Internet companies, in order to reflect their real value.The full text is divided into five parts: Chapter I elaborates the background, significance, research history, methodology, innovation and the structure of this article; Chapter II focuses on the theoretical basis of listed Internet companies valuation, defines the object which the paper studies, and introduces the FCF theory; Chapter III emphatically discusses the key factors that have remarkably influences on listed Internet companies valuation, from which we get that company's growth and profitability are the core elements that affects the Internet company's value; Chapter IV puts forward the assumptions and the principles that listed Internet companies valuation should be guided by. Then based on the traditional FCF discount model, the article proposes the model under Scenario Analysis, according to characteristics of the listed Internet companies, and use it to value Sohu company, finally its market value is lower than its intrinsic value; Chapter V sums up the main points and shortcomings of this paper.