Internet Unicorn Company Valuation

With the rapid development of the Internet in China,the Internet economy has become one of the important driving factors for the economic development of our country.The Internet has also become the first choice industry for many people to start their own businesses,and more and more Internet enterprises will spring up.Internet is a very fast growing industry.Internet enterprises need a lot of financial support at every stage from establishment to maturity.Therefore,how to value these Internet enterprises to facilitate their financing activities has become an issue of great concern to Internet business managers and investors.Because Internet enterprises need a large amount of investment in the first and middle stages of development,they may not be able to obtain the income and profit reflecting their real profitability,and the applicability of traditional valuation model may be low,so how to select the appropriate model for reasonable valuation of Internet enterprises has always been a difficulty.Internet enterprises also have the characteristics of rapid development,and unicorn companies are very easy to be born in Internet enterprises,so the valuation of these Internet Unicorn companies has become a hot spot.This thesis first reviews the conclusions of various valuation models applied to different enterprises,and then introduces various valuation methods.Combined with the stage of the development of Internet enterprises and the characteristics of Unicorn enterprises,it is decided to use EVA,DCF and valuation model based on the number of users to study the valuation of Xiaomi group,the representative of Internet Unicorn enterprises.Through empirical analysis,we find that EVA and the valuation model based on the number of users have reference significance for the valuation of Xiaomi group.After combining the characteristics of each enterprise,these two valuation models can be applied to the valuation analysis of other Internet Unicorn enterprises.