Welcome to AsiaBizTech Web Site

Top Page
Site Map
News at a Glance Member Services AsiaBizTech Resources

Advanced Search

(Nikkei BP Group)

(No.1 High-Tech News Site in Japanese)

  • Taiwan Sees Rush in Internet Operation Investments
  • September 22, 1998 (TAIPEI) -- The success of many listed U.S.-based Internet operators is influencing more Taiwan companies to invest in Internet operations.
    Officials here suggest that in Taiwan, an Internet operator should estimate its share price at 100 times its average growth in a three-year period.

    Internet-related companies listed on the United States bourse such as Amazon.com and Yahoo! Inc. have impressed the world with their skyrocketing share prices.

    Some local companies, such as search engine YamWeb Navigator, have begun issuing share rights and implementing corporate restructuring as preparations for stock listing.

    Officials at the Industrial Development Bureau (IDB) under the Ministry of Economic Affairs have researched and come up with a way to calculate share prices of local Internet operators.

    Share price should be equivalent to the average growth of the company for a three-year period.

    If a company reports an average growth at 100 percent for three years, they said, its share price should be set at NT$100 (US$2.90).

    Should the growth stand at 50 percent, then the share price should be NT$50, according to IDB officials.

    IDB officials offered another way to estimate company net values. As one client with contracts lasting for more than a year brings in between NT$5,000 and NT$10,000 in income, a company with 100,000 clients should report at least NT$500 million in net value, officials said.

    This method, however, can only applied when the company reaches a certain number of clients.

    (Commercial Times, Taiwan)

    Copyright © 1997-98
    Nikkei BP BizTech, Inc.
    All Rights Reserved.
    Updated: Mon Sep 21 18:53:17 1998 PDT