Valuation of internet companies: A survey of the evidence

Abstract

In this article, we review the recent academic research on the valuation of Internet companies. In particular, we focus on the valuation method(s) which were said to be suitable for new economy start-ups in the boom years 1998–2000, and conclude that they were neither novel nor very accurate. Since the downturn in the sector, the valuation focus has returned to advanced fundamental valuation methods such as real options valuation.

Citation

Jansen, P. and Perotti, E. (2002), "Valuation of internet companies: A survey of the evidence", Hirschey, M., John, K. and Makhija, A.K. (Ed.) Innovations in Investments and Corporate Finance (Advances in Financial Economics, Vol. 7), Emerald Group Publishing Limited, Leeds, pp. 1-17. https://doi.org/10.1016/S1569-3732(02)07001-9