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Private Equity Investments in Virtual Reality Technology: Valuation Dynamics Across Different Stages
- 1 School of Accounting, Liaoning University of International Business and Economics, Dalian, 116052, China
* Author to whom correspondence should be addressed.
Abstract
Accompanied by the rapid development of digital technology in recent years, virtual reality (VR) technology is the inevitable trend of modern development. Virtual reality technology mainly refers to the use of digital technology to build a world beyond reality, to achieve a kind of interaction between the virtual world and the real world of the living space. The combination of the virtual world and the real world has always been a hot topic that human society has always been concerned about. This paper focuses on the different stages of private investment in the development of virtual reality technology and the changes in valuation through these stages as well as some advantages and disadvantages of these valuation methods for the VR industry. This paper focuses on the four stages of development experienced by the VR industry, what products are available in these four stages and some of the contributions made by these products. These four stages correspond to the private investment, valuation analysis of the four stages, this paper discusses with three valuation methods (PEG valuation method, market present rate valuation method, and price-to-sales (PS) valuation method). The enterprise value and market capitalization of some well-known VR companies outside China are unfolded, pointing out that for such a high-risk and high-growth industry as VR, sometimes there may be no equivalence. This article stands in the investor's point of view to think about whether some private investment in VR industry should be reasonable.
Keywords
Virtual Reality Technology, Private Equity Investment, Valuation
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Cite this article
Chen,Q. (2024). Private Equity Investments in Virtual Reality Technology: Valuation Dynamics Across Different Stages. Advances in Economics, Management and Political Sciences,93,154-161.
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