We found a match
Your institution may have access to this item. Find your institution then sign in to continue.
- Title
COMPANY VALUATION. HOW TO DEAL WITH A RANGE OF VALUES?
- Authors
Patena, Wiktor
- Abstract
Company valuation is not done after having generated a few values being a result of applying different valuation methods. In many cases institutions ordering the valuation request a value which can be an equivalent of a market, transactional value. Often the one method (and the valuation resulting from the method) can be indicated, since the valuer claims that it gives the most precise value of the company. However, it is safer to consider the range of values and then try to determine the final value which is the result of a combination of several methods. However, the question is how to consistently deal with a range of values. One of the solutions are so-called mixed methods of company valuation. They are criticized in this paper as they are too subjective. Instead we suggest considering a portfolio approach - PATEV (Portfolio Approach to Equity Valuation). In addition to having to choose a method of defining one value, the value is subject to further corrections: liquidity and control discounts.
- Subjects
VALUATION; BUSINESS finance; LIQUIDITY (Economics); CASH discounts; TRANSACTION costs
- Publication
Financial Internet Quarterly 'e-Finanse', 2011, Vol 7, Issue 3, p75
- ISSN
2719-3454
- Publication type
Article