Study On Assessment Of Investment Value In Internet Enterprises: A Case Of Baidu

This paper demonstrates the applicability of the EVA valuation model to the valuation of Internet companies from two aspects of theory and empirical analysis respectively. From the theoretical point of view, the Internet enterprise organization is different with the traditional enterprise, its particularity in the growth mode, financing channels, cost structure and profit model and competitive advantages, the use of traditional value assessment theory and method is quite limited. The EVA valuation model makes up for the limitations of traditional valuation theory without considering the cost of equity capital, which can accurately reflect the cost of investment in Internet companies. At the same time, the EVA model of enterprise R & D costs reasonable capitalization, goodwill, reasonable amortization, etc., so that the Internet business valuation can better reflect the development potential of the enterprise. From the empirical perspective, this paper takes Baidu Inc as an example, using the EVA valuation model assesses the overall value of the enterprise on the DCF and P/E valuation results, results were compared, results show that the intrinsic value of EVA valuation results can reflect the Baidu Inc.