The Application of DCF Model in MCN Evaluation: -Case Study of Fengyuzhu Company

Abstract

With rapid growth of the Internet celebrity economy presented by live e-commerce, MCN company has become a “new outlet” of e-commerce industry. The capital market is paying increasing attention to the valuation and investment of “MCN” company. However, as China's MCN is still in its infancy and its development is not mature enough, it is difficult to evaluate this kind of company. By using the two-stage free cash model to predict the free cash flow for growing years, this paper evaluates the value and stock market price of Fengyuzhu company, the head MCN company, to a certain extent, thus making up the evaluation research gap of this kind of MCN company and providing reasonable investment decision-making advice for internal management, external investors and external regulators of MCN company.