Research Of The Internet Enterprise Value Assessment Based On Real Option Theory

Recently, the rapid development of Internet enterprise based on information technology led to the emergence of the Internet economy, as a new economic form, it was gradually changed our life and the traditional business model, have a tremendous impact on traditional industries. The appearance of “internet + ” led to assess the value of Internet enterprise is actually needed. Due to the unique nature of the Internet enterprise lead to the existing internet enterprise valuation methods can not accurately reflect its true value. This paper attempts to build a more comprehens ive and better Internet enterprise valuation model through theory and practice.This paper analyzes the characteristics of Internet enterprise and the applicability of the existing internet enterprise valuation methods, recognizing Discounted Cash Flow Technique is still where the enterprise valuation basis, but it cannot reflect the potential value of Internet enterprise and the value of non-financial factors. O n this basis, the paper for its limitations, combined with the advantages of real options theory, use discounted cash flow method to determine the value of the company’s existing business, use real options theory to assess the potential value of the business, Thus, the enterprise value will be divided into two parts, the value of existing business enterprises and potential value. Then, This paper introduced non- financial factors to amend it against its limitations. Construct non-financial factors adjustment factor using AHP to adjust the value of the company’s overall business. Finally, do empirical research using Tencent’s case to further validate the model validity.