Research on Evaluating Valuation Techniques of New Technology Enterprises: Taking Emerging Markets as an Example

DOI

10.2991/978-2-38476-475-4_118How to use a DOI?

Keywords

Enterprise valuation; emerging market; new technology enterprise

Abstract

Emerging tech entrepreneurs and venture capitalists face persistent challenges in quantifying enterprise worth, particularly when dealing with innovative business models. For entrepreneurs and investors, the necessity to expand financial resources and gauge the potential earnings of these firms heightens the significance of their evaluation. This paper presents an all-encompassing framework to evaluate the advantages and disadvantages of the current valuation approaches. Asset evaluation methods can be applied when a company has foreseeable future cash flows or when there is a definite degree of similarity among firms within the industry. However, new technology-based firms often struggle to meet this requirement. While financial management-based methods focus on financial indicators and risk assessment and ignores the important impact of non-financial factors such as the entrepreneurial team, technological innovation ability, and market competitive advantage on the firm’s value. Whereas entrepreneurial management-based methods have the opposite problem: it pays attention to multiple aspects of venture capitalists’ evaluation of the firm, including the entrepreneurial team, product or service, market, etc., but lacks a systematic financial assessment and cannot accurately quantify the firm’s value. Both of them is not accurate and comprehensive enough. Lastly, intellectual property valuation methods cannot deeply reflect the core value of intellectual property. This paper summarizes the commonly used methods of enterprise valuation and their limitations, which facilitates investors in choosing the optimal method in practical valuations.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Weixiao Luo
PY  - 2025
DA  - 2025/11/11
TI  - Research on Evaluating Valuation Techniques of New Technology Enterprises: Taking Emerging Markets as an Example
BT  - Proceedings of the 2025 10th International Conference on Modern Management, Education and Social Sciences (MMET 2025)
PB  - Atlantis Press
SP  - 1071
EP  - 1079
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-475-4_118
DO  - 10.2991/978-2-38476-475-4_118
ID  - Luo2025
ER  -