Research On The Valuation Of Start-up Internet Companies Based On Consumer Value

Nowadays,with the continuous development of the Internet industry and the transformation and upgrading of the traditional industry,a large number of start-up Internet companies have been born.Internet companies will have a lot of financing needs in the start-up stage.In order to meet the reasonable pricing of investment and financing stage,the enterprise value evaluation becomes the key link in the financing process.However,due to the characteristics of the start-up Internet companies,the existing traditional valuation methods have shortcomings in the evaluation of such companies,and can not meet the needs of reasonable valuation pricing.Therefore,it is necessary to actively explore and study the evaluation methods of start-up Internet companies.When evaluating an start-up Internet company,the first step is to find its core value driver,called the source of value.In the context of Internet economy,Internet companies have been transformed into user-oriented companies,so users are the core value driving force of Internet companies.The accumulation of early users determines the survival and development of the start-up Internet companies,so this paper explores the value evaluation of the start-up Internet companies from the view of user value.The commonly evaluation methods based on user value in Chinese market includes Metcalfe's law valuation model and Guotai Junan's Internet enterprise valuation model,they are all used to estimate the value of Internet companies based on the user value.However,both evaluation methods believe that the value of Internet companies will increase with the unlimited growth of the number of users,so there will be the problem that the value of the companies will be overvalued.In this paper,the user lifetime value model is taken as the original valuation model,and the parameters in the model are improved and determined,in order to obtain a more suitable valuation model for start-up Internet companies.The issue of this article is:How to evaluate the value of Internet companies in the initial stage based on user value?The current research status and the characteristics of this article is:At present,there are few researches on the value evaluation of start-up Internet companies,and most of the proposed valuation models are also improved by traditional valuation methods,although these improved valuation methods improve the applicability to a certain extent,due to the core value driver of start-up Internet companies is user resources,these improved valuation methods must also have limitations.Moreover,the research on valuation of start-up Internet companies based on user value in domestic and foreign theoretical circles is even less.Therefore,this paper studies the evaluation of start-up Internet companies fromthe perspective of user value,then builds the valuation model of start-up Internet companiesbased on user value.The research ideas and methods of this article:Firstly,sort out the existing research results on traditional enterprise valuation methods,Internet enterprise valuation methods and start-up Internet enterprise valuation methods;secondly,analyze the characteristics of the start-up Internet companies,the difficulty of valuation and the limitations of traditional valuation methods;thirdly,construct the user value valuation model based on customer lifetime value model,and study the model improvement and the determination of the parameter;finally,the applicability of the valuation model is demonstrated by introducing a case.The research value of this article:The research on the valuation of start-up Internet companies based on consumer value can help find out the value sources of start-up Internet companies,not only provide reference for the reasonable pricing of start-up Internet companies but also provide a theoretical basis for the value evaluation practice of enterprise's listing and mergers in the future.