Value Evaluation Of Internet Enterprises Based On Improved Dcf Model

With the development of the Internet,a lot of new industries and fields related to the Internet have been born.With the oil,electrical appliances,communications and other traditional industries,"the number of users" has always been the most important indicators of Internet companies.The stock price performance of Internet enterprises is also highly correlated with the number of users and less correlated with the traditional financial indicators,which makes the traditional valuation methods that focus on financial indicators unable to adapt to the Internet enterprises.The paper altogether divides into five parts: First is the introduction.It mainly introduces the research background and significance of the paper,as well as the existing literature research status at home and abroad,followed by related theories.Mainly introduced the enterprise value rationale,the value appraisal method,the Internet correlation rationale and enterprise’s life cycle theory.Next is the traditional valuation method to the Internet enterprise valuation method suitability analysis.Aiming at the difficulty in valuing the Internet companies by the discounted free cash flow model,this paper forecasts the growth of the revenue in the free cash flow by the increase of the number of users.Next is the correlation case analysis.First,the company’s existing business model,profitability and then predict the future number of users of the website,and then according to the number of users to predict the business revenue in the free cash flow of enterprises to calculate the free cash flow of enterprises,and then calculate the value of enterprises,through comparison with the market value to reach a conclusion and analysis of the reasons for differences,the final paper’s conclusions,deficiencies and related recommendations.