Originally prepared for class on Monday June 19, 2000
Revised August 12, 2000
1. Discuss methods of valuing ecommerce businesses, particularly
those without positive net income.
2. Apply these methods to particular companies or business segments.
3. Discuss how valuation of ecommerce businesses differs from other
businesses.
Conduct your own online research on useful articles on valuation
of ecommerce businesses.
Read some online articles from web sites such as the following.
(Thanks to Chip Miller for suggesting several of these articles):
"For E-Tailers, the Shipping News Isn't Good" by Katherine Hobson at http://www.thestreet.com/tech/internet/1000962.html
"Regulating the New Economy's Stocks" by Anya Schiffrin, July 17, 2000 at http://www.thestandard.net/article/display/0,1151,16875,00.html
"Number Crunchers" by Carol Pickering, July 11, 2000 at http://www.business2.com/content/magazine/ebusiness/2000/06/28/13593
"The Bumpy Road of Electronic Commerce" by Andrew Odlyzko at http://www.research.att.com/~amo/doc/bumpy.road.txt
"Internet Business Valuation Analysis for J.C. Bradford & Co: An Effective Methodology for Evaluating Internet Retailing Firms" by Christopher Conway and Matthew Thiel at http://ecommerce.vanderbilt.edu/Student.Projects/pdf/
"CS First Boston's Bill Burnham Makes E-Commerce E-asy To Understand" at http://www.nextwavestocks.com/waveband399.html
"Give Me Your Billions: Internet Stock Valuation and Future User Characteristics" by Jakob Nielsen at http://www.useit.com/alertbox/990117.html
"Internet Valuation: Why Are The Values So High?" at http://www.sternstewart.com/evaluation/v2n1.shtml
"Overview of Internet Stock Valuation Techniques" at http://www.stocksontheweb.com/1overv.htm
"Investing in Internet Companies" at http://www.investorguide.com/Internet.htm
"Microstrategy Still Totaling the Losses" at http://www.cfraonline.com/news/newsitem.jsp?item=post_03_22_2000.src
"The New Economy", speech by SEC Commissioner Arthur Levitt, March 6, 2000, at http://www.sec.gov/news/speeches/spch352.htm
"The Intangible Costs and Benefits of Computer Investments: Evidence from the Financial Markets", by Erik Brynjolfsson and Shinkyu Yang at http://ccs.mit.edu/erik/itq/
The Intangibles Research Project of the New York University Stern School of Business at http://www.stern.nyu.edu/ross/ProjectInt/
International Institute of Knowledge Management at http://www.iikm.com/
Student Presentations
(presentation titles are subject to change)
Bill Barna, "Valuation of B2B Ecommerce"
Katie Robbins, "Electronic Commerce Accounting and Tax Issues Impacting
Not-For-Profit Organizations"