Research On The Application Of Modified DEVA Method In Internet Enterprise Valuation

With the high speed development of Internet technology, Internet has already entered a 2.0 era, the Internet economy hasan increasing influence on the economic structure.According to CNNIC, at the end of 2015,There are 688 million Internet people using the Internet product or service, and the proportion of Internet people of China has been increased to 50.3% from 47.9% at the end of 2014. In the past 10 years, the scale of China’s Internet users showed a trend of accelerated growth, Internet penetration rate is rising year by year.So in terms of the scale of the growth of the information technology in our country, the Internet economy in the future there will be more broad space for development, andcontributes to the national economy growth. The Internet industry is also active in the capital market in China.According to Wind Info, as of February 29, 2016, the cumulative 499 Internet companies already listed in the national stock transfer system of small and medium-sized enterprises; In 2015 the 407 merger, acquisition and reorganization of the trade mark is the Internet enterprise software and services; Inaddition, Alibaba buyed Youku Tudou Inc for $3.67 billion;The Ming an insurance was estimated the value of 50 billion Yuan in the first round of funding agencies.Internet companies promote themselves through taking part in the main board, the new three board, acquisition in the capital market. Because most Internet companies havefaster upgrading technology,the proceeds of investment equalling the risk characteristics. It is important to build a reasonable and effective valuation system that ensure that can accurately evaluate the Internet company’s intrinsic value, whichis also one of key stakeholders focus on.So this article will study the valuation methods of Internet enterprise that the profitability hasn’t been the stable and mature stage based on the rapid development of Internet economy, combining with the characteristics of Internet enterprise development and the present situation of valuation.Firstly, the paper introduces the definition, classification, present situation and characteristics of Internet companies, and then comparatively analyses the characteristics of Internet enterprise valuation at home and abroad, for the next Internet enterprise valuation methods choice as analysis basis.Lastly, the paper will verify the effectiveness of new valuation model by the Internet business case based on laws of the characteristic of the Internet industry and DEVA valuation method. The course of modifying DEVA valuation method isthat affirming thenature of Internet user, the relation between contribution of the user and enterprisevalue, the market share: firstlythe paper makes sure the users online are active andwill bring value to the enterprise.Second User is mainly the contribution of the index of reference is commonly used in telecom operators per User Average contribution value(business Revenue User, ARPU).According to the Zipf Law, the relationship between the number of users and the value should be nln(n),consequently establish a correct DEVA Internet company valuation model.