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Academic Journal of Business & Management, 2020, 2(1); doi: 10.25236/AJBM.2020.020103.

Research on the method of predicting the overvaluation of unicorn enterprises in China


Meichen Ai

Corresponding Author:
Meichen Ai

College of management, Shanghai University, Shanghai  201800, China


Unicorns are a group of innovative enterprises that develop rapidly in a short period under the background of new economy, have innovation strength and industry influence, and have broad prospects for future development. The pursuit of unicorns in the capital market has led to a serious bubble in the valuation of unicorns, leading to the question of the overvaluation of unicorns. In this context, this paper studies the research method of whether the value of unicorns is overestimated before listing. For unicorn overvalued enterprise value problem, this paper argues that in the same period in the secondary market for the unicorn has reference significance value evaluation, selection and unicorn similar comparable enterprise business enterprise value as the benchmark, the innovative forecasting method is proposed: when unicorn pre-ipo valuations are higher than comparable enterprise valuation, can foresee the unicorn the value of listed companies before may be overrated, investors face the possibility of loss.



Cite This Paper

Meichen Ai. Research on the method of predicting the overvaluation of unicorn enterprises in China. Academic Journal of Business & Management (2020) Vol. 2, Issue 1: 14-24. https://doi.org/10.25236/AJBM.2020.020103.


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