Research on Company Valuation Methods based on Data Traffic -- Taking Tencent as an Example

Zhuohang Xie ()
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Zhuohang Xie: Renmin University of China

A chapter in Proceedings of the 2025 5th International Conference on Enterprise Management and Economic Development (ICEMED 2025), 2025, pp 26-36 from Springer

Abstract: Abstract With the advent of the digital economy era, the valuation of Internet enterprises is encountering novel challenges. Traditional valuation methods, such as the dividend discount model (DDM) and the discounted free cash flow model (DCF), exhibit significant limitations when applied to Internet companies. This is primarily due to the unique characteristics of data traffic, which is the core asset of these enterprises. Data traffic is dynamic, influenced by network effects, and possesses ecological synergistic value, making it difficult to accurately evaluate using conventional approaches. This paper aims to explore a company valuation method based on data traffic. Taking Tencent as an example, it analyses the practical application value of data traffic indicators in the valuation of Internet enterprises. By reviewing mainstream valuation methods and their application scenarios, the paper proposes a valuation logic based on data traffic, with the goal of providing investors with a more forward-looking basis for value judgment.

Keywords: Data-Driven Valuation; Corporate Valuation; Metcalfe’s Law (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-811-0_4

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DOI: 10.2991/978-94-6463-811-0_4

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