TITLE:
An Investigation of Internet Enterprise Value Assessment Based on Comprehensive Evaluation Method
AUTHORS:
Xinyu Peng, Xiameng Bai
KEYWORDS:
Internet Enterprise Value, Comprehensive Evaluation Method, Analytic Hierarchy Process (AHP), Stock Price
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.7 No.4,
April
30,
2017
ABSTRACT: According to the overall asset status, the profitability and the economic
environment, enterprise value evaluation is a comprehensive assessment of the
overall fair market of the enterprise. Different enterprises have
different nature and assessment targets, a suitable method should be chosen for
assessment of different enterprise characteristics. The
traditional methods of enterprise value evaluation can be summarized as three
basic types: the cost methods, the marketing method and the revenue method.
Different from traditional enterprise, internet enterprise is defined as the
knowledge-intensive enterprise, whose enterprise value has a very typical light
asset structure. A new enterprise value evaluation method should be raised for
internet enterprises. In this paper, a complete and comprehensive assessment
system based on fuzzy mathematics and analytic hierarchy process (AHP) has been
raised for internet listed enterprise value. The assessment
system put forward five general indicators to assess the overall value of target
enterprise, including the own value of enterprise, strategic core, product
design and service, financial status and potential value. All indicators are divided into two classes:
quantitative group and qualitative group. The weight coefficients of quantitative
group are determined by data collection and the qualitative group weight
coefficients are determined by expert scoring method. Considering all the
indicators having different units, extreme
method has been used for non-dimension and the indicators can be compared
between each other. Every enterprise has a score which can re-present one’s own status in the whole internet industry which depends on
the whole value of the five different indictors. The stock value of every internet
enterprise can be estimated by the comprehensive score and the otherness
between the different results from different value methods can be compared.