Enterprise Valuation In Internet Video

Internet entertainment industry's future development trend to a certain extent,reflected from the Internet video industry since 2016,with the entertainment industry a tightening of the regulatory side,such as salary limit,regulation of Yin and Yang of the contract,from the regulatory side effect to the above all is less time to watch the video and film and TV heddle plate of the resulting revenue growth speed slow.On the one hand,the supply of online video content is falling off a cliff.On the other hand,the growth rate of online content is plummeting.This makes the "film and drama synthesis" in the film and television sector approximately form the stock competition and zero-sum game.However,in recent years,with the popularity of Internet social platforms and the drive of fan economy,the Internet video industry has been developed.Especially due to the impact of COVID-19,online video viewing has become one of the main options for home isolation,which has further accelerated the sustainable development of the Internet video industry.Internet video industry,there are a lot of intangible assets and has obvious scale economy and Matthew effect,public opinion think Internet video company despite the upfront cost is high,but along with the increase in user contribution to the cost of each user will reduce gradually,but in fact though Internet enterprise revenue but higher profit ability is not strong,the market value in the capital market is very strong,For example,i QIYI,Mango Supermedia,Bilibili's market value soared all the way over 100 billion yuan.Among them,Mango Supermedia has been played more than 150 million times in a single day and more than 2 billion times in total,making the market value of Mango Supermedia surpass 100 billion all the way.On the day of its launch,the valuation of Mango Supermedia increased by 6.82%;28 days after its launch,its stock price rose by 24%.This is enough to prove that the Internet video industry is recognized by the capital market.This paper selects diversified Internet video companies with high market value as the research object,divides the businesses of Internet video companies according to certain standards,and then calculates the enterprise value by summation of SOTP model.For each business segment,find the core drivers and choose the appropriate method to value by module.It includes the applicability analysis of DEVA model and the modification of some parameters,as well as the improvement of P/S index,in order to be more in line with the characteristics of enterprise value in the Internet video industry.Finally,the results calculated by the mainstream P/S method in the market are compared with the market value on September 30,2020.Verify the applicability of SOTP valuation model and the difficulty of traditional single index valuation to measure the value of diversified Internet video industry,and analyze the reasons for the differences.The calculation using SOTP model makes up for the shortcoming that the mainstream valuation method directly uses a single index to calculate.Because a single index is difficult to comprehensively measure diversified businesses,the accuracy of the valuation can be improved by dividing the business sectors into segments.In this paper,a representative company in the Internet video industry,Mango Hypermedia,is selected to analyze the reasonable valuation method of the value of Mango Hypermedia,and make a reasonable estimate of the enterprise value of Mango Hypermedia,in order to provide a reference for the rational pricing and valuation of the Internet video industry in the capital market.