Research On Application Of Projection Tracking Analysis In Internet Enterprise Value Evaluation

Internet companies, which are based on network, in the process of development cannot leave the various ways of financing. Only companies clear their own value, can better access to financial support, so the suitable method to evaluate the internet companies is particularly important. In addition, in recent years, many Chinese internet companies listed overseas, and the difference of internet company valuation methods between Chinese and overseas is one of the reason of this phenomenon. So to find a scientific and reasonable evaluation method for internet company is very important for the development of the internet industry and the securities market.This paper analyses the characteristics of internet companies and the existing valuation methods, find that Non-financial factors has important influence on the internet company value and suggest using market approach to value internet company. Existing market approach, which have considered the characteristics, "asset-light, high-risk", of the internet business, but still some have drawbacks in the value ratio correction aspect. The comparable company method lack the comprehensive index analysis of internet companies, so this paper introduce Projection Pursuit Cluster Analysis to market method, using improved market approach to evaluate internet companies. Based on the characteristics of Projection Pursuit Cluster Analysis, established the comprehensive index correction system using in internet company valuation. First, we determined specific indicators of the enterprise value according to the specific characteristics of internet companies. Then select the U.S. stock market internet companies as the sample. At last, obtained index weights by Projection Pursuit Cluster Analysis, and the comprehensive index correction system can be completed. Finally, used the Tencent as a case to validate and illustrate the feasibility and reliability of the method.The comprehensive index correction system based on Projection Pursuit Cluster Analysis not only considers the overall impact of the internet enterprise factors, and reduces the subjective judgments. Through the above research,This paper hope provide new ideas and helpful reference for internet enterprise evaluation methods, then push the development of internet companies and China’s capital markets.