Valuation Research Of SQ Online Game Company Based On Metcalfe Model

The online game industry is an emerging industry in the Chinese market.Since its birth at the end of the 20 th century,the industry has developed very rapidly and become one of the industries with the greatest development potential in the 21 st century.Online games are deeply loved by people.Under the strong demand,the industry is developing towards more innovative and high quality.Founded in 2011,SQ online Game Company has become a leading enterprise in the industry with its excellent research and development ability and advanced corporate strategy in more than ten years.The launch of many high-quality games has also helped the company to accumulate a strong user base.In the face of such rapid development and growing comprehensive strength of SQ company,stakeholders are very concerned about the actual value of the company.In order to better manage the management and avoid blind investment by investors,it is very necessary to reasonably estimate the value of SQ company.In this paper,Metcalfe model is used to determine the user as the main influencing factor,and the value estimation closely focuses on the industry characteristics to estimate the value of SQ company more accurately.This paper is divided into five parts.Firstly,the research background,purpose and significance are introduced,and the research achievements of Metcalfe model in theory and application direction at home and abroad are reviewed.Secondly,it introduces the related concepts and theories involved in the subsequent research of this paper.As the main valuation method of this paper,the main content and limitations of Metcalfe model are analyzed.Third,a brief introduction is made to SQ Company,the research object of this paper,including its development history,business composition,internal and external environment.As an important aspect to understand the company,this paper also elaborates from four aspects of profitability,debt paying ability,operating ability and growth ability,laying a foundation for the development of subsequent valuation.In addition,the fourth part of the valuation model is compared,because the Metcalfe model has many advantages such as grasping the core factors of the industry valuation,the final choice of Metcalfe model for valuation.Before using the model,the network scale,number of users,unit user value and promotion cost were revised,and the final model was revised as.Finally,the data was selected in SQ company,and the evaluation results were analyzed from the two aspects of valuation effectiveness and the comparison of valuation results of different methods.Then,through the single factor sensitivity analysis and the problems found in the valuation process,relevant suggestions were put forward for each stakeholder,suggesting that the company should make up the weaknesses on the basis of the model factors.It is suggested that investors recognize the value of the company and invest rationally.The research shows that Metcalfe model can be applied to the value estimation of online game companies.