Valuation of the IoT Industry Based on Relative and Absolute Valuation Method

Abstract

In recent years, the IoT industry has experienced an extremely rapid development which attracts large amounts of investors. In this case, a suitable valuation for such industry is necessary to offer some suggestions for investments. Applying the relative valuation method and the absolute valuation method to analyze the valuation of the Internet of Things industry, this article studies the data development of five leading companies in the industry and performs the discounted cash flow valuation method on Hikvision, with the aim of providing regulatory advice to listed companies and providing investors with a basis for decision making. The results show that the overall development trend of the industry is found to be good at present, and the cash flow is in the state of increasing year by year but diminishing margin, but there may be a downward trend and the industry still has some room for growth in the future. These results shed light on guiding further exploration of IoT industry evaluation.