Analysis Of Internet Enterprise Value Evaluation

Under the background of the increasingly perfect market economy in China,the increasingly frequent corporate equity acquisition and mergers and other activities need to evaluate the value of the enterprise.Accurate assessment of corporate value is not only conducive to the development of the company itself,but also helps investors make more correct choices.In recent years,the market size of China's Internet industry has continued to expand.The Internet industry has many characteristics that are different from traditional industries,making it sometimes impossible to use traditional valuation methods.This paper selects the cash flow discount method and the real option method to evaluate the value of the target company through applicability analysis.In terms of research methods,this paper chooses the discounted cash flow method to evaluate Tencent Holdings.The difficulty and focus of the discounted cash flow method is the forecast of cash flow.In order to obtain more accurate results,this paper conducts the development of the Internet industry.Introduced,and then analyzed the future development potential of Tencent.Due to the complexity of Tencent's business,this article only selects its main business areas for analysis,namely the game,video,audio and social industries.In addition,this paper also analyzes Tencent's enterprise architecture and corporate strategy.In other words,based on the analysis of the historical development of Tencent Holdings,this paper combines the collected information as much as possible to further analyze the relatively uncertain factors such as its future development space.In the specific valuation process,this paper brings the results of Chapters 3 and 4 into the selected model for settlement.Then the sensitivity analysis of the single factor and two factors was carried out on the calculation results.The most significant impact was the growth rate of operating income,followed by the weighted average cost of capital.In the end,the paper concludes that the DCF method has strong applicability to Internet companies and the market underestimates the value of Tencent,and the choice of parameters when using the DCF method,especially the conclusion of operating income growth rate and weighted average cost of capital.