Theoretical and Methodical Aspects of Assessment of the Enterprise Value
Journal Title: Бізнес Інформ - Year 2013, Vol 10, Issue 0
Abstract
The article characterises the "market capitalisation", "market value" and "fair value" (of an enterprise) notions and determines relations between them. It offers to use the indicator of fair value when assessing effectiveness of enterprise activity and when determining potential of future growth. It determines key methods of assessment of a fair enterprise value using the income approach, which is based on discounting future revenues of an enterprise. It characterises specific features of the use of the expenditure approach methods, which are based on determining net assets of the enterprise - object of assessment. It provides methods of assessment on the basis of a comparative analysis of the fair value of shares and value of a similar enterprise, which belong to the market approach. It shows advantages and shortcomings of methods of each approach to assessment of the enterprise value. It identifies that the most effective method of assessment of the enterprise value is the model of discounted cash flows, which has modifications depending on the goals of assessment. It proves the model of discounted cash flows objectively reflects enterprise's drive for stable growth and generation of the forecasted profit.
Authors and Affiliations
Tetiana Hryschenko, Ganna Reshetova
Keywords
Related Articles
- EP ID EP157218
- DOI -
- Views 100
- Downloads 0
Use of Preventive Crisis Management to Stabilize the Market Position of Enterprise
The article describes the results of research aimed at the use by Ukrainian enterprises of preventive crisis management, which, unlike the more common crisis management, whose actions are directed to interfering in the a...
Methods for Evaluation of Financial and Investment Potential and their Impact on Ensuring Strategic Flexibility of the Enterprise
The aim of the article is to study methodological approaches to evaluation of the financial and investment potential and their role in ensuring the enterprise strategic flexibility. The analysis of existing methods of fi...
Determining the Level of Obsolescence in the Technological Audit of Intellectual Technologies
The article is aimed to develop methodical recommendations for estimating the level of obsolescence of intellectual-innovative technologies (intellectual property objects). A detailed analysis of the existing methodical...
Evaluation of Indicators of the Market Structure Concentration of Ukraine's Banking System
In modern conditions, the actual problem is the formation of the optimal structure of the banking system. This requires management to react quickly to changes and implement qualitative changes in their operations. Possib...
Methods for Substantiating Indicators in the System for Controlling the Balance of Socio-Economic Development of Regions
One of the dominant trends of the territorial development is seen as strengthening of imbalances, increase in the interregional differentiation, uneven distribution of capacity growth. The existing situation displays wea...