And Xiaohongshu may be the hottest target of undercurrents. According to the annual statistics, Xiaohongshu is currently the third-party content platform with the largest user scale besides Alibaba, ByteDance, and Tencent. Figure: User scale monthly active list of the spring track Source: Jinduan sorting Just at the end of the month, there were market rumors that Xiaohongshu had completed a round of financing. Although the company quickly denied it, the intention of the popular company, which has been in existence for ten years, to go public is already known to everyone. The most important issue for the listing is how to price Xiaohongshu, the leader of the content community with a strong label color? Today we will talk about the pre-issue of Xiaohongshu's valuation: the valuation logic of content communities with different business models.
One thing that needs to be made clear is that before the japanese phone numbers list specific financial report is disclosed, Xiaohongshu is still shy and timid to the market. Therefore, compared with the limitations of traditional sophisticated valuation methods (such as net present value), we decided to use a rougher industry valuation and comparison method to roughly sort it out. Anchored by user scale, valuation based on user scale, user growth rate and customer acquisition cost is a valuation logic native to the Internet era and the core basis for the valuation of most platform-based Internet companies. The theoretical basis for user scale valuation comes from Metcalfe's Law proposed by the company's founder Robert Metcalfe in 2000: The value of a network is equal to the square of the number of nodes in the network, and the value of the network is proportional to the square of the number of users connected to the network.