IDEAS home Printed from https://ideas.repec.org/a/gam/jjrfmx/v16y2023i6p293-d1165864.html

A Data Valuation Model to Estimate the Investment Value of Platform Companies: Based on Discounted Cash Flow

Author

Listed:
  • Hyongmook Cheong

    (Seoul Business School, aSSIST University, Seoul 03767, Republic of Korea)

  • Boyoung Kim

    (Seoul Business School, aSSIST University, Seoul 03767, Republic of Korea)

  • Ivan Ureta Vaquero

    (Department of Business Economics, Health and Social Care, The University of Applied Sciences and Arts of Southern Switzerland, 6928 Manno, Switzerland)

Abstract

As both investment attraction and mergers and acquisitions targeting information technology and platform companies are becoming more important in the digital-centric economic environment, interest in valuing corporate data assets is increasing. Accordingly, among the income approaches used in business valuation, this study presents a data valuation model based on discounted cash flow. This model is expected to be useful for corporate investment decision-making. The assumptions used in this study for the estimation of data income include intangible asset value, exclude net asset value, and data attribution is centered on technology, human resources, and market factors. In particular, data attribution accounts comprise ordinary data research and development, data labor costs, and data advertising expenses. Data costs were divided into those incurred during collection, storage, curation, analysis, and utilization. Financial statements and related data from a real estate information platform operator over three years were collected and used to simulate the data valuation model. The simulation reveals that the operator possesses KRW 472.6 billion in data assets. Ultimately, the data valuation model developed in this study can contribute to strengthening platform operators’ investment attraction, guaranteeing financial sustainability, and transparency and data assetization.

Suggested Citation

  • Hyongmook Cheong & Boyoung Kim & Ivan Ureta Vaquero, 2023. "A Data Valuation Model to Estimate the Investment Value of Platform Companies: Based on Discounted Cash Flow," JRFM, MDPI, vol. 16(6), pages 1-17, June.
    • Handle: RePEc:gam:jjrfmx:v:16:y:2023:i:6:p:293-:d:1165864
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1911-8074/16/6/293/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1911-8074/16/6/293/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Chutatong Charumilind & Raja Kali & Yupana Wiwattanakantang, 2006. "Connected Lending: Thailand before the Financial Crisis," The Journal of Business, University of Chicago Press, vol. 79(1), pages 181-218, January.
    2. Amir, Eli & Lev, Baruch, 1996. "Value-relevance of nonfinancial information: The wireless communications industry," Journal of Accounting and Economics, Elsevier, vol. 22(1-3), pages 3-30, October.
    3. Thomas Nellessen & Henning Zuelch, 2011. "The reliability of investment property fair values under IFRS," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 29(1), pages 59-73, February.
    4. Thomas Nellessen & Henning Zuelch, 2011. "The reliability of investment property fair values under IFRS," Journal of Property Investment & Finance, Emerald Group Publishing Limited, vol. 29(1), pages 59-73, February.
    5. Elias Steinmüller & Georg U. Thunecke & Georg Wamser, 2019. "Corporate income taxes around the world: a survey on forward-looking tax measures and two applications," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(2), pages 418-456, April.
    6. Edward I. Altman & Gabriele Sabato, 2013. "MODELING CREDIT RISK FOR SMEs: EVIDENCE FROM THE US MARKET," World Scientific Book Chapters, in: Oliviero Roggi & Edward I Altman (ed.), Managing and Measuring Risk Emerging Global Standards and Regulations After the Financial Crisis, chapter 9, pages 251-279, World Scientific Publishing Co. Pte. Ltd..
    7. Golan, Amos & Judge, George & Robinson, Sherman, 1994. "Recovering Information from Incomplete or Partial Multisectoral Economic Data," The Review of Economics and Statistics, MIT Press, vol. 76(3), pages 541-549, August.
    8. Carol A. Corrado & Charles R. Hulten, 2010. "How Do You Measure a "Technological Revolution"?," American Economic Review, American Economic Association, vol. 100(2), pages 99-104, May.
    9. Niamh Brennan & Brenda Connell, 2000. "Intellectual capital : current issues and policy implications," Open Access publications 10197/2916, Research Repository, University College Dublin.
    10. Na Shen & Kevin Au & Weiwen Li, 2020. "Strategic alignment of intangible assets: The role of corporate social responsibility," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1119-1139, December.
    11. Phung, Doan L., 1980. "Cost comparison of energy projects: Discounted cash flow and revenue requirement methods," Energy, Elsevier, vol. 5(10), pages 1053-1072.
    12. Jennergren, L. Peter, 2008. "Continuing value in firm valuation by the discounted cash flow model," European Journal of Operational Research, Elsevier, vol. 185(3), pages 1548-1563, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, ZiYi & Cui, JinDong, 2025. "Customer green preference and corporate valuation premium: The role of digital platforms," Finance Research Letters, Elsevier, vol. 86(PF).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Allaya, Manel & Derouiche, Imen & Muessig, Anke, 2022. "Voluntary disclosure, ownership structure, and corporate debt maturity: A study of French listed firms," International Review of Financial Analysis, Elsevier, vol. 81(C).
    2. Olunifesi Adekunle Suraj, 2016. "Managing Telecommunications for Development: An Analysis of Intellectual Capital in Nigerian Telecommunication Industry," Journal of Information & Knowledge Management (JIKM), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 1-30, March.
    3. Robin Döttling & Tomislav Ladika & Enrico Perotti, 2016. "The (Self-)Funding of Intangibles," Tinbergen Institute Discussion Papers 16-093/IV, Tinbergen Institute.
    4. Stanley C. W. Salvary, 2003. "Financial accounting information and the relevance/irrelevance issue," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 5(2), pages 140-175.
    5. Marc Mueller & Emanuele Ferrari, 2012. "Social Accounting Matrices and Satellite Accounts for EU27 on NUTS2 Level (SAMNUTS2)," JRC Research Reports JRC73088, Joint Research Centre.
    6. Modina, Michele & Pietrovito, Filomena & Gallucci, Carmen & Formisano, Vincenzo, 2023. "Predicting SMEs’ default risk: Evidence from bank-firm relationship data," The Quarterly Review of Economics and Finance, Elsevier, vol. 89(C), pages 254-268.
    7. Yin‐Hua Yeh & Pei‐Gi Shu & Re‐Jin Guo, 2008. "Ownership Structure and IPO Valuation—Evidence from Taiwan," Financial Management, Financial Management Association International, vol. 37(1), pages 141-161, March.
    8. Qin, Wei & Liang, Quanxi & Jiao, Yan & Lu, Meiting & Shan, Yaowen, 2022. "Social trust and dividend payouts: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 72(C).
    9. Eric Cauvin & Pierre-Laurent Bescos, 2005. "Nature Et Caracteristiques Des Informations Utilisees Par Les Entreprises Françaises Dans Le Cadre De Leur Communication Financiere : Une Etude Empirique," Post-Print halshs-00581142, HAL.
    10. Nicholas Bloom & Jonathan S. Hartley & Raffaella Sadun & Rachel Schuh & John Van Reenen, 2025. "Management and firm dynamism," CEP Discussion Papers dp2102, Centre for Economic Performance, LSE.
    11. Lin, Hsiou-Wei William & Lo, Huai-Chun & Wu, Ruei-Shian, 2016. "Modeling default prediction with earnings management," Pacific-Basin Finance Journal, Elsevier, vol. 40(PB), pages 306-322.
    12. Ventsislava Nikolova-Minkova, 2022. "Bulgarian and Foreign Trademark Activity in Bulgaria and Bulgarian Trademark Activity Abroad for the Period 2000-2019," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 173-196.
    13. Ryan Ball & Robert M. Bushman & Florin P. Vasvari, 2008. "The Debt‐Contracting Value of Accounting Information and Loan Syndicate Structure," Journal of Accounting Research, John Wiley & Sons, Ltd., vol. 46(2), pages 247-287, May.
    14. Grégoire Rota-Graziosi & Fayçal Sawadogo, 2020. "The tax burden on mobile network operators in Africa," Working Papers hal-03109370, HAL.
    15. Francesco Ciampi & Alessandro Giannozzi & Giacomo Marzi & Edward I. Altman, 2021. "Rethinking SME default prediction: a systematic literature review and future perspectives," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(3), pages 2141-2188, March.
    16. Po-Hsuan Hsu & Dongmei Li & Qin Li & Siew Hong Teoh & Kevin Tseng, 2022. "Valuation of New Trademarks," Management Science, INFORMS, vol. 68(1), pages 257-279, January.
    17. Wang, Zhi & Gehlhar, Mark & Yao, Shunli, 2010. "A globally consistent framework for reliability-based trade statistics reconciliation in the presence of an entrepôt," China Economic Review, Elsevier, vol. 21(1), pages 161-189, March.
    18. Jensen, Henning Tarp & Keogh-Brown, Marcus R. & Shankar, Bhavani & Aekplakorn, Wichai & Basu, Sanjay & Cuevas, Soledad & Dangour, Alan D. & Gheewala, Shabbir H. & Green, Rosemary & Joy, Edward J.M. & , 2019. "Palm oil and dietary change: Application of an integrated macroeconomic, environmental, demographic, and health modelling framework for Thailand," Food Policy, Elsevier, vol. 83(C), pages 92-103.
    19. Peter Cheng & Lin Li & Wilson H.S. Tong & Chingfu Tsai, 2025. "The Intangible Shift: Redefining the Dynamics of Market-to-Book Ratios," Post-Print hal-05302706, HAL.
    20. Jintao Zhang & Zhen Yang & Li Meng & Lu Han, 2022. "Environmental regulations and enterprises innovation performance: the role of R&D investments and political connections," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4088-4109, March.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jjrfmx:v:16:y:2023:i:6:p:293-:d:1165864. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.