Research Of Enterprise Products Internet Company Valuation Method

As China's economy continued rapid growth, China gave birth to many rely on high-tech, innovative business model of high-speed growth of the Internet enterprise. In these innovative enterprise rapid development, has a huge demand for capital, also aroused the enthusiasm of investment institutions. Investment activities increased significantly at the same time, how to evaluate the value of the investment enterprise to become investment and financing of the two sides need to solve the problem. Existing concepts of valuation and valuation mode under the new market environment and the business model is suitable? What kind of valuation method is suitable for the new market environment, under the new competition pattern, new business models of Internet business? This article will discuss and study for the Internet company valuation theory and method, for equity investment and financing parties find a fair market price to provide the reference.This paper reviews the previous valuation methods as well as the systematic valuation system. Respectively expounds the theoretical foundation of the relative valuation method and absolute valuation method, and the applicable range and difference of the valuation method to do the detailed comparative analysis, points out the value of equity cash flow discount model method, the advantages and disadvantages of applicable conditions. On applicable scope of the model with the Internet enterprise business model, market environment, characteristics of industry competition made a detailed analysis. Aiming at the problems likely scenario and probably made assumptions, for the behind of the empirical analysis provides a theoretical basis. According to industry characteristics of the Internet industry, combining the enterprise's unique business model, revenue high-growth geometry type may be present, marginal cost is low, there is a multi-stage development situation, put forward to DCF model (discounted Cash Flow), on the basis of two-phase Equity Cash Flow discount model (Free Cash Flow to Equity, FCFE) FCFE model to study the Internet enterprise valuation method. Is the focus of this article is based on the characteristics of enterprise Internet company, using two stage FCFE model makes an empirical analysis to the gem listed company network science and technology. Valuation model are introduced in detail the selection of process and the parameters of the valuation, analysis and calculation, and the calculation results with the PEG in the relative valuation method, comparing the valuation method that is the conclusion of evaluation of enterprise value relatively overvalued. In this paper, according to the actual situation of China's capital market the discounted cash flow to equity valuation models in the practical application of deficiency is improved. According to the actual situation of enterprise development used the model of two phase structure, section of the model, the selection of rediscount rate aspect according to the score keeping ten-year bonds interest rates and yields in shenzhen in the past 10 years trying to equity transaction both sides and appraisal institutions to provide a valuation model of the operation is simple, practical and effective, the Internet industry for the future of equity trading, stock investment, merger, acquisition and reorganization of value assessment of target enterprise to provide a little reference.It is worth noting that China's a-share market due to the relatively short development, maturity is not high, there is no perfect delisting mechanism, the listed company of liquidity premium relative to illiquid new three board market has already formed the valuations of fracture. At the same time, China's capital market structure of the investors who have individual investors accounted for more than the capital markets of developed countries, the structure of investors is not reasonable, the whole investors not mature enough, herding effect is very obvious, themes hype and follow suit phenomenon is obvious. These factors have seriously affected the a-share market valuations, the company's stock price may not reflect the intrinsic value of the enterprise. We want to realize, whether cost method, comparative method and income method these valuation methods as A means of evaluation of enterprise internal value, can be A relatively fair evaluation of enterprise's intrinsic value, but for the a-share listed companies, to give full consideration to the market mechanism is not perfect and the price and the value of the liquidity premium caused deviation to the condition of relatively fair evaluation of the intrinsic value of listed companies.