Year 2022, Issue 146

Date published

16.11.2022

Table of content

  • Svetoslav Iliychovski
    POSSIBILITIES FOR DERIVING THE INDICATIVE VALUE OF A COMMERCIAL ENTERPRISE
    JEL: G10, G12, L70
    Keywords: valuation of a commercial enterprise, commercial company value, valuation approaches, valuation methods
    Summary: This paper proposes a broader theoretical view of the process of determining the indicative value of a commercial enterprise. A methodlogical framework of commercial companies’ valuation toolkit is presented. The features of the traditional approaches, respectively valuation methods, are examined. An algorithm for determining  ... ... ABSTRACT This paper proposes a broader theoretical view of the process of determining the indicative value of a commercial enterprise. A methodlogical framework of commercial companies’ valuation toolkit is presented. The features of the traditional approaches, respectively valuation methods, are examined. An algorithm for determining the value of a commercial enterprise for each of the approaches is presented. Emphasis is placed on modern valuation tools. A complete algorithm of the comercial enterprise valuation process is given. More focus is placed on the macroeconomic, sectorial analysis (construction sector), and the analysis of the financial position of the assessed enterprise. The proposed algorithm for calculating the market value of a commercial enterprise has been tested in practice. CONTENTS Introduction 7 Chapter ². Theoretical foundations of the evaluation of a commercial enterprise 11 I.1. Conceptual apparatus for evaluating a commercial enterprise 11 I.2. Types of values used in commercial enterprise valuation 20 I.3. Peculiarities of a commercial enterprise as an object of valuation 30 Chapter ²². Methodological framework of the toolkit for evaluating a commercial enterprise 37 II.1. The concept and features of the cost approach as a valuation method 37 II.2. Income approach to the valuation of a commercial enterprise 52 II.3. Comparative approach to the valuation of a commercial enterprise 72 II.4. Modern approaches to the valuation of a commercial enterprise 90 II.5. Reconciliation results and creating a valuation report of a commercial enterprise 111 Chapter III. Practical aspects of deriving the indicative value of a commercial enterprise 128 III.1. Macroeconomic and industry analysis 128 III.2. Analysis of enterprise performance evaluation 143 III.3. Choosing approaches to value a commercial enterprise "X" 161 III.4. Reconciliation results and deriving the market value of an enterprise 167 Conclusion 170 References 173