Discussion Of The Internet Financial Enterprises Valuation Based On EVA Model

Finance is one of the important pillars of China's social and economic development.With the continuous development of the Internet economy,the Internet finance industry has also emerged.Nowadays,the Internet finance industry is experiencing an unprecedented rapid development,and various types of Internet financial services have emerged,such as crowdfunding,Internet wealth management,and third-party payment services.At the same time,traditional financial institutions are also vigorously developing Internet finance business and embracing the Internet finance era actively.In daily work and life,people are becoming more and more accustomed to solving daily needs such as consumption payment,investment and financial management and personal loans directly online.These online financial services provide great convenience for our life.In the era of national mobile payment,many investors are gradually attracted to the Internet financial industry,and many investors continue to pay attention to the development potential of Internet financial enterprises.In the capital market,the market value of the Internet finance concept sector varies greatly,so many investors pay great attention to how to evaluate the value of Internet finance companies scientifically and effectively.Compared with traditional value assessment methods,EVA value assessment model can reflect the unique growth,risk of the enterprise.EVA value assessment method can make some adjustments for some accountant subject of financial index based on the characteristics of the enterprise own development and consider total cost of capital of the enterprise.The enterprise value assessment evaluation result is more perspective and scientific which can help to provide certain reference to major investors and managers when they make investment decision.Additionally,most internet finance enterprises are characterized by high cost for research,high future interests and high risk for growth stage.The value of internet finance enterprises is more accurate after evaluating by EVA value assessment model than other models.Lakala is one of the earliest companies engaged in third-party payment business in China which is founded in 2005.It focuses on providing payment services for enterprises.It also provides some third-party payment derivatives service.Lakala's main business focus is on the merchant side market.This article adopts the EVA value evaluation method to carry out a value evaluation of Lakala,which is in line with thecharacteristics of Lakala's asset-light business model.To achieve an accurate evaluation of Lakala's value and provide stakeholders with reliable information reference.The first chapter of this paper introduces the research background of the thesis:It includes the current status and reviews of domestic and foreign research,research and thesis framework;The second chapter provides a theoretical overview: It introduces the basic theory of Internet financial companies,analyzing the applicability and application benefits of EVA to Internet financial companies;The third chapter conducts a case analysis of Lakala: It summarizes Lakala's historical evolution and operating income;The fourth chapter is based on the company's operating characteristics,It includes the analysis of the principles and driving factors of Lakala's application of the EVA value model.Based on the analysis in the previous chapter;the fifth chapter puts forward suggestions for increasing the value of the enterprises.Enlightenment:(1)For business operators,the EVA value assessment model is helpful for discovering the value creation process and value driving factors of Internet financial companies,which is conducive to attaching importance to the company's value creation ability and improving the company's value creation efficiency effectively.(2)For external investors and industry regulators,the EVA value assessment model can reveal the intrinsic value of Internet financial companies,and the EVA model can help them make reasonable investment decisions and formulate relevant market regulatory policies.(3)From the perspective of EVA value creation,Internet finance companies should make reasonable allocation of resources and stand on the company's long-term development view.It improves the efficiency of capital use and promote the maximization of shareholder value.Main contributions:(1)Based on the EVA value assessment model and the operating situation of Internet finance company Lakala,this paper predicts its future performance based on Lakala's actual strategic drivers and proposes relevant countermeasures to enhance its EVA value.(2)In the process of enterprise value evaluation,the current industry development trends and industry characteristics were discussed.During the value evaluation process,analyzing the enterprise value creation,capital allocation,business performance,etc.Besides,putting forward some suggestions for the value enhancement of internet financial companies.