The Research On The Value Appraisal Of E-commerce Enterprises Based On The Modified Cash Flow Method

With the rapid development of computer technology,the broad application and popularization of the Internet and the innovation of a series of related technology,the internet is developing rapidly in the world.At the same time,the International business model is developing rapidly in China,so that the e-commerce company valuation is a hot issue that scholars study.E-commerce company is different from traditional enterprises that it owns itself characteristics.Therefore,building a evaluation mode which is fit for the character of e-commerce company,seeking a method to deal with the problem and making a series of scientific theories of e-commerce company' valuation that is meaning of this article selected topic.By summarizing a lot of domestic and foreign literature,it is conclusion that the e-commerce enterprise is different from traditional company in operating characteristics ?business model and profit model.Therefore,the paper start from the adaptability of traditional value evaluation method to study these methods.Then we can propose the ideas of modified discounted cash flow model through the comparative study.Finally,we can improve the traditional discounted cash flow model and combine with empirical analysis to verify its rationality,based on the basic theory of traditional discounted cash flow method and combining with the characteristics of e-commerce enterprise.The paper built a modified discount cash flow model without using EBIT as the basis for calculating cash flow,excluding other uncertain factors.For examples,operating income and expenses,investment income and so on.Internet companies as high and new technology industry with,difficulties in making the company's future profitability variable metric,the proposed amendments to the cash flow model of evaluation on the e-commerce enterprise has a The modified cash flow model in this paper,without the use of EBIT as the basis of calculating cash flow,but singling out the operating income,operating expenses and investment income and so on,which as the modified cash flow,it can reflect the relationship between e-commerce and the stable cash well and truly.In addition,in order to reducing uncertainty factors,the paper discuss a Variety of situations about sustainable growth,so that we can have a comprehensive understanding of sustainable growth.Finally,so as to discount rate of future cash flow being more suitable for the electronic commerce enterprise,the paperintroduce a firm specific risk return rate to modified the equity capital cost.The paper chose a representative e-commerce enterprise in domestic market which named Focus Technology Co.,Ltd to verify the effectiveness of the modified cash flow model in the end.