Research On Internet Game Enterprise Value Evaluation Based On Improved Ohlson Model

The rise of the internet economy has driven the popularity of internet gaming,an industry that has emerged to provide a new form of entertainment.Unlike traditional forms of entertainment,internet gaming can open up an immersive entertainment life without leaving home,and can even enable social functions that are difficult to achieve with other forms of home entertainment.As the Internet gaming industry continues to grow and market transactions continue to increase,the valuation of Internet gaming companies becomes very critical.The valuation of Internet gaming companies affects the investment decisions of investors and the management strategies of business managers.The special feature of Internet game enterprises is that their value is not determined by the fixed assets of the enterprise,but mainly by their ability to develop game software and the ability to promote the project,so such enterprises usually have the problem of a long revenue period,and these enterprises will generally have a large capital investment in the early stage of their establishment,but the return is low,and it is not until the later stage,after acquiring a sufficient number of users and getting wide It is not until later on,after acquiring a sufficient number of users and gaining widespread recognition from users,that profits can be achieved.In addition,the speed of product updates and the degree of policy regulation make it more difficult to assess the value of an Internet game company.It is difficult for the three basic valuation methods to accurately predict the true value of Internet game enterprises,so this thesis tries to accurately assess the value of Internet game enterprises by introducing a new model.After comparing the advantages and disadvantages of different valuation models and their applicability to the valuation work of gaming enterprises,this thesis selects the Ohlson model for the valuation of Internet gaming enterprises,taking into account the characteristics of Internet gaming enterprises,and elaborates on the principles of the model;it also makes amendments to the limitations of the Ohlson model,solves the difficulties of residual income prediction and the difficulties for enterprises to meet infinite prediction periods,and analyses the Finally,the model was applied to a case study in which Sanji Mutual Entertainment was selected as the appraised company,and the valuation was calculated using the improved Ohlson model and compared with the valuation values of the FCFF model and the market approach,as well as the market value as at the valuation base date selected for the valuation case.The final results show that the difference between the valuation results of the two models and the market value are within a reasonable range,indicating the applicability of the Ohlson residual income valuation model to the valuation of internet gaming enterprises.This further verifies the reasonableness and validity of the improved residual income valuation model for the valuation of Internet gaming enterprises.