The Impact Of Business Model On Corporate Value Assessment

Since Xiaomi Company announced its IPO in Hong Kong,the valuation of Xiaomi has also become the focus of the capital market.The dispute for Xiaomi's valuation is mainly due to the different positioning.Some people believe that from the financial statements of Xiaomi,it's operating income is mainly came from hardware manufacturing revenue,so Xiaomi's valuation should be valued according to hardware manufacturing enterprise.There are also views that Xiaomi can't be simply regarded as a traditional hardware manufacturing enterprise.It has a complete software system and it gradually forms an ecological closed loop of household electronic consumption,so it should be valued according to Internet companies.With the development of the Internet,more and more new enterprises innovate their business model innovation based on the Internet.The valuation differences between the market and Xiaomi may be caused by the divergence of Internet services or the Xiaomi's positioning.In view of the above problems,this paper uses the case study method to analyze the valuation differences of Xiaomi Company under different business models,and discusses the impact of business model on enterprise value assessment.First,the paper introduces the related concepts of Internet enterprise value assessment and enterprise ecology,as well as the impact on the valuation of enterprises under different business models.Secondly,respectively explaine the rationality of different business model positioning by analysing the listing situation and performance of Xiaomi Company.Thirdly,the Xiaomi company is positioned as the enterprises under the IOT ecological chain mode,and the market value and income method are used to analyze the company value of Xiaomi Company through the selection of the benchmarking enterprises.And the rationality of positioning Xiaomi Company as a hardware manufacturing enterprise,and analyzes the influence of Xiaomi Company's enterprise value assessment.Finally,compare the corporate value of Xiaomi Company under the two business models.Through the analysis of the value evaluation of Xiaomi Company under different business models,the following conclusions are drawn: 1.Under the assumption of different business models,when the market value is used to evaluate the value of Xiaomi Company,the selected benchmark enterprises will be greatly different,and then it will have a great impact on the valuation results.2.Based on the assumption of the IOT ecological chain model,the valuation result of Xiaomi Company is much bigger than those of positioning Xiaomi Company as a hardware manufacturing enterprise.Through the analysis,it is found that the main reason for this result lies in the IOT eco-chain business model,Xiaomi's revenue growth space is relatively large,and the market's growth space and growth rate are relatively large,so the rate of return is relatively large,and the future revenue time is also relatively long.In the hardware manufacturing mode,the business model is more mature,and the revenue space and growth space are far less than the IOT eco-chain model,and the market price of comparable hardware manufacturing companies is also lower.The above factors have caused a large difference in the valuation of Xiaomi Company under different business models.The conclusions of this paper show that in the Internet era,the design and implementation of enterprise business models have a great impact on the value creation of enterprises.Therefore,when assessing the value of an enterprise,the business model of the target enterprise should be analyzed,and the evaluation error should be reduced by reasonable assumptions and selection of the appropriate evaluation parameters,so that the evaluation price is close to the real value of the enterprise.