The Research On Enterprise Valuation Of NEEQ Internet Company Based On Life Cycle

With increasing number of National Equities Exchange Quotations (NEEQ) listed companies tremendously, capital market provides a more broad platform of investment and financing for investors, also for small and medium-sized enterprises. Affected by the policy and the economy, more and more investors pay close attention to NEEQ listed internet companies. My research purpose is based on the age of internet, according to research source of enterprise value and enterprise evaluation method, also combines with the NEEQ features and realities to find the most suitable evaluation method to satisfy with the both parties’demand and to improve activities of the NEEQ, in order to play a role of diversified financing.My research adopt the NEEQ listed internet enterprise "company A" as object of study. Firstly I describes the characteristics and development trend of the Internet industry, secondly I introduces the situation of A company and characteristics, and finally combines the condition of A company, I respectively analyzed and calculated enterprise valuation of A company upon on the absolute valuation method, relative valuation method and real option theory.By comparing the different evaluation methods of the calculation result I found that both absolute valuation method and option pricing model cannot fully reflect the enterprise valuation of A company. So I suggest applying life cycle theory to the valuation of A company, through the qualitative and quantitative analysis to determine A company’s life cycle. The result of the under the theory of life cycle is the most close to the results of A company’s share price, and the calculation results under A company’s share price. In order to test life cycle theory I choose two other Internet companies listed on the NEEQ to calculate their enterprise value with different value evaluation method, the results also showed that life cycle under the principle of the result is most close to the company’s share price, and the results were lower than their respective shares. So I think the life cycle theory applied to the NEEQ’s Internet enterprise value assessment is applicable, and can reduce the risk of share price is overvalued.