Thesis (M.B.A.)--California State University, Long Beach, 2000
The purpose of this study is to introduce and to discuss the merits of different methods that can be applied to the valuation of Internet start-ups. These start-ups cannot be adequately valued with traditional models, such as the DCF method or the Market Multiple method, due to their lack of profits
Given the shortcomings of current valuation methods, this research aims at establishing more appropriate valuation methods for Internet start-ups. Specifically, four new valuation methods are discussed in depth, followed by a sample company valuation for each method. The four methods are the Economic Value Added method, the Benchmarking method, the Customer Contribution approach, and the Real Options approach
Finally, these methods, with their inherent advantages and disadvantages, will be compared and contrasted in the conclusion. Furthermore, the methods will be ranked according to various criteria, and findings about their practicality and necessary further research will be discussed
