Research On The Valuation Methods Of Private Equity Funds For Internet Enterprises

As a new type of investment,private equity investment has developed rapidly in China in recent years.Private equity investment companies have made it possible for enterprises to obtain funds to promote the development of enterprises and achieve transformation and upgrading.With the development of Internet technology,more and more Internet companies have emerged,and private equity funds have also participated in the investment in Internet companies.However,as a new type of enterprise development model,Internet companies rely on the value growth model of enterprises.With the potential for future development and the speed of value growth,traditional methods for assessing corporate value have not been well applied to the valuation of Internet companies,so that the results of the assessment cannot,of course,truly reflect the actual value of the company.This paper builds a new user value model based on the Metcalf principle,taking into account the value drivers of Internet companies and the particularities of Internet companies,in order to value the PE companies that invest in the Internet,hoping to give PE pairs Internet companies complement the method of valuation.This article is divided into six parts.The first part is the introduction part,which mainly summarizes the valuation methods of domestic and foreign companies,especially the valuation methods of Internet companies.The second part is to analyze the characteristics of Internet companies’ business models.Through analysis,it can be found that Internet companies are different from traditional enterprises.The third part is the method analysis of PE’s valuation of the Internet.In this part,the limitations of traditional enterprise valuation methods and the new characteristics of PE’s valuation of Internet companies are discussed.The fourth part is the model construction part of the article,which is also the key part.It mainly constructs the user value model based on the Metcalf principle,and discusses the characteristics and applicability of the model.The fifth part is the empirical part of the dissertation.It selects a private equity case to demonstrate the validity of the user value model.The last part of the article isa retrospection of the entire constructed model,discusses the feasibility and insufficiency of the valuation model,and makes corresponding compensatory measures for the inadequacies.