A Comparative Study Of Internet Enterprise Value Evaluation Based On DDM And EVA Model

The Internet was born in the 1960 s.Today,the development of the Internet industry has experienced a development process from small to large.The industry chain has developed relatively well,with the continuous updating and upgrading of information technology.The scale of the Internet market continues to expand,and the increasing number of Internet companies choose to go public through mergers and acquisitions.The expansion of market demand has led a growing number of investors to notice such investment trends.To achieve investment objectives,investors need to have a more accurate assessment of the target company’s value.However,because the Internet industry is different from the traditional industry asset structure,R&D expenses,financial expenses and capital costs have a great impact on the value of Internet companies,which makes it difficult for traditional value assessment models to accurately predict the value of Internet enterprises.This paper tends to combine the theoretical analysis with the case analysis to select the several models,evaluate the value of the Internet companies,and compare the applicability of the value evaluation model.This paper expounds the basic characteristics of the Internet industry and the advantages and disadvantages of the traditional value assessment model,and selects the DDM and EVA models to compare the applicability of Internet enterprise value assessment.Through the construction and adjustment of the two model parameters,and the adjusted model is used to evaluate the enterprise value of the case,the evaluation results are compared with the actual value of the evaluated enterprise,and it is found that the EVA model is more suitable for Internet enterprises,and combined with the previous theoretical analysis,suggesting optimization for the two models.The value of Internet companies are analyzes by using two valuation models to find out the most suitable method for evaluating the value of Internet enterprises.It hopes to provide some reference and reference for improving the value evaluation system of Internet enterprises in the future.