Research On Enterprise Valuation Of XiaoMi

The rapid development of the economy has promoted various capital operations between enterprises have become the norm.As an important criterion for measuring these economic activities,enterprise value assessment has an extraordinary meaning for all information users.The Internet industry has occupied the core position of current technological changes.Xiaomi is one of the outstanding companies,the evaluation of its value has such characteristics as the lack of historical data and the variety of business operations,which are different from traditional enterprises.Xiaomi's own business characteristics and financial situation also reflect that the types of markets involved are more complicated,comparable companies are difficult to find,intangible assets account for a relatively large valuation difficulty,and it is necessary to find a suitable value assessment method to solve.This paper first explains the background and significance of the research.Secondly,it briefly describes the relevant theoretical basis of enterprise value assessment,and the principles,basic preconditions,operation methods,advantages and disadvantages of the four value assessment methods including cost method,market method,income method and real option method.The theoretical research on the valuation of enterprises,especially the valuation of Internet companies,is discussed.At the same time,understand the development history of the case enterprise,the industrial layout,the industry in which it is located and the basic situation in the industry,and clarify the special business ecological operation mode of "Triathlon",and fully grasp the financial situation including the business status,profitability,operation ability and solvency,and analyze its future development prospects.On this basis,based on the characteristics common to Internet companies,the difficulty of valuation and the value evaluation method used by representative Internet leading companies,and according to the actual situation of the company reflected by Xiaomi's industrial structure and financial data,the paper recognizes the valuation difficulties of Xiaomi.Combine various factors to compare different enterprise value assessment methods,select the economic value added(EVA)model and price-earnings ratio(P/E)evaluation method to conduct valuation analysis and comparative research on Xiaomi Company.Finally,this paper believes that the evaluation results obtained by the EVA model are more rigorous and reflect the true value of the company.The value of Xiaomi Company should be around HK$ 10.32,which still has investment value compared with the current level.