Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 29 , 10 November 2023


Open Access | Article

The Valuation of Internet Companies Based on Adjusted Black -Scholes Model

Yanbin Yang * 1
1 University of Rochester

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 29, 133-142
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Yanbin Yang. The Valuation of Internet Companies Based on Adjusted Black -Scholes Model. AEMPS (2023) Vol. 29: 133-142. DOI: 10.54254/2754-1169/29/20231369.

Abstract

With the continuous breakthrough of Internet technology, we can clearly see the huge growth space and potential profitability of related companies. However, due to their unique instant change and uncertainty, high returns and high risks exist simultaneously and finding new approaches different from traditional ones to evaluate internet companies is necessary and significant. Based on adjusted Black-Scholes Model, this study discusses three approaches: Metcalfe approach values internet companies that relies on user numbers. DCF approach and Fuzzy real option approach estimate internet companies with strong cash flow and long-period potential growth, focusing on probability and fuzzy theory separately.

Keywords

Black-Scholes model, internet company, fuzzy, Metcalfe, valuation

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Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-079-0
ISBN (Online)
978-1-83558-080-6
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/29/20231369
Copyright
10 November 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated