Research On Internet Company Valuation Based On AEG Valuation Model

In recent years,traditional retail business has been hardly hitted by the Internet E-commerce.It is because the improvement of the science and the economic globalization,and the put forward of the conception“Internet +”.In 2014,Premier Li Keqiang stressed that we must increase the connection between the tradional business and the Internet business.We must find a new business model to make revenue.In order to keep up with the pace of the times and meet the needs of the market,more and more traditional enterprises began to embark on the road of combining with the Internet,innovated their own business models and sought new ways out.Antarctic e-commerce as the examples of successful transition,actively responds to market changes.Under the mode of combining brand authorization business with business integrated service platform business,Antarctic e-commerce transforms its business model and establishes a one-stop full-service platform.Internet enterprises are mainly innovative,entrepreneurial and developing enterprises.As a special business model,It has high value of intangible assets and its revenue is always not accurate.The Internet enterprises are still developing.Its potential is infinite.It becomes more and more important to evaluate the value of the Internet business.The first step is to establish a perfect value evaluation system and a model that is suitable for Internet enterprises.Only by accurately evaluating the Internet enterprises that the Most of the financial report users could make correct investment choices and formulate the business strategy.Nowadays,the “Value Investing”has become a investing strategy that most of the investors recommend.A reasonable investor should pay more attention to the long-term value creation ablility.Through a more reasonable evaluation method,they could find undervalued enterprises,so as to further analyze the enterprises,decide whether they should invest on them.For the managers of enterprises,it is also of far-reaching significance to master a set of scientific methods of enterprise value evaluation.In order to pursue the long-term survival and development of enterprises,increase the intrinsic value of enterprises and maximize the wealth of shareholders,so it's the same important to manage a scientific method of value evaluation.As the object of this study,Antarctic e-commerce has completed the magnificent transformation from traditional retail enterprises to Internet e-commerce enterprises,created a great deal of value by combining brand authorization business with business integrated service platform business,and in 2017,Antarctic e-commerce has opened up mobile Internet services.In order to effectively evaluate this brand effect of Internet companies,this paper adopts the Abnormal Earnings Growth Model(AEG)to evaluate it.Firstly,this paper introduces the background and the significance of the research,relevant document about the value evaluation both here and abroad,the analyzing method and the basic framwork.Secondly,it outlines the relevant methods and models of AEG value evaluation,and the benefit of applying AEG valuation model in Internet enterprises.Thirdly,taking Antarctic E-Commerce Company-a typical Internet company as an example,this paper adopts the case analysis method,make a conclusion of the Antarctic E-Commerce Company value evaluation background,such as the business model and the industry trends.And then,based on the annual report data of Antarctic E-Commerce Company and related data,this paper evaluates the enterprise value of Antarctic E-Commerce Company.At last,this paper makes a comment on the result of the value evaluation and gives the recommendation.The research indicates that:(1)It can't get out of the financial background when we assess the value of the enterprises.It should find the suitable value evaluation model and method accrording to the industry trend and the business model.(2)when using the AEG model to evaluate the Antarctic E-Commerce Company,only by combine with the financial date so that evaluation could give a correct prediction hypothesis.(3)Correctly evaluate the value of the enterprises.And in the process of the assessment,analyze the enterprises' profitability,the origin of the value growth.At last,give recommendation according to the analyzation.