Sale-and-Leaseback Agreements and Enterprise Valuation

1978 ◽  
Vol 13 (5) ◽  
pp. 871 ◽  
Author(s):  
E. Han Kim ◽  
Wilbur G. Lewellen ◽  
John J. McConnell
Keyword(s):  
Enterprise Valuation

Interfaces for enterprise valuation from a real options lens

2018 ◽  
Vol 27 (1) ◽  
pp. 69-80
Author(s):  
Jackson J. Tan
Keyword(s):  
Real Options ◽  
Enterprise Valuation

scholarly journals Enterprise Valuation Analysis Based on Grey Prediction Model and Index Selection—A Case Study of Huayi Brothers Media Group

2016 ◽  
Vol 8 (8) ◽  
pp. 11
Author(s):  
Na Luo ◽  
Jiangrui Chen ◽  
Lingyi Kong ◽  
Yuanfeng Zhu
Keyword(s):  
Prediction Method ◽  
Share Price ◽  
Grey Prediction ◽  
Average Value ◽  
Valuation Model ◽  
Enterprise Valuation ◽  
Reasonable Range ◽  
Significant Area ◽  
Relative Valuation ◽  
Media Group

<p>Research on the investment value of enterprises has been a significant area, which the market investors and corporate decision-makers always pay much attention to. In this paper, Huayi Brothers Media Group, the leading enterprise of the film industry, is chosen as the research subject. The paper firstly targeted the difficulties of evaluating Huayi Brothers through analyzing its financial data. Then we used the improved grey prediction method as an absolute valuation model to estimate the cash flow, with relative valuation models, including PE, PB, PS and PEG, as supplements. From the results, we reached a conclusion that these two kinds of valuation models have a similar market value for Huayi Brothers at about 40 billion, which should be reliable when compared with the current average value, about 39 billion, evaluated by 13 official valuation mechanisms. What’s more, the share price of Huayi Brothers in the bull market in 2015 is far higher than the reasonable range of value, and thus we advised that short-term investors have better not make an investment on Huayi Brothers until its share price is in a reasonable range.</p>

scholarly journals Modern Methods of Business Valuation—Case Study and New Concepts

2020 ◽  
Vol 12 (7) ◽  
pp. 2699
Author(s):  
Ireneusz Miciuła ◽  
Marta Kadłubek ◽  
Paweł Stępień
Keyword(s):  
Code Of Conduct ◽  
Fair Value ◽  
Modern World ◽  
Business Valuation ◽  
Enterprise Value ◽  
Critical Elements ◽  
Enterprise Valuation ◽  
New Concepts ◽  
Commercial Transaction ◽  
Modern Business

In the modern world, the terms enterprise value and valuation are of great importance. Knowledge about how much an enterprise is worth is of fundamental importance for both the owner of that company and investors when negotiating the price of an enterprise at the time of conducting a commercial transaction. The article presents the goals of the company’s valuation and characteristic stages of the company’s life at which such valuation is necessary. The article classifies the methods of enterprise valuation used today. On this basis, the valuation methodology is presented according to the MDI-R concept (Assets, Income, Intellectual Capital-Market), which in a broad spectrum measures the effectiveness of the company’s operations and, in accordance with the current features of good valuation, aims to determine the fair value of the company. The purpose of the article is to demonstrate the need to improve the code of conduct and valuation standards. As part of the implementation of the objective, multi-faceted and complex valuation issues are presented, as well as factors that may distort the determination of fair value. The methodology of the study is based on inferences about the methodology of business valuation, and verification is based on practical examples, by which a hypothesis on the existence of critical elements of valuation is verified that allows the use of broad subjectivity in estimating the value of assets. At the same time, the factors that determine the possibility of the existence of too wide a subjectivity in estimating assets, which is in contradiction with the features of good valuation, are presented. The attempt is made to draw attention to the threats arising from modern business valuation methodologies and their challenges in the future. Additionally, this article offers the authors’ proposed hybrid method MDI-R, which draws from existing solutions to improve their functionality and applicability.

Enterprise valuation with track-record ratios and rates of change

2009 ◽  
Vol 16 (1) ◽  
pp. 57-78 ◽  
Author(s):  
Luis González Jiménez ◽  
Luis Blanco Pascual
Keyword(s):  
Rates Of Change ◽  
Enterprise Valuation ◽  
Track Record

scholarly journals The applicability of FCFF method evaluating an enterprise of Real Estate segment

2021 ◽  
Vol 91 ◽  
pp. 01042
Author(s):  
Jaromír Vrbka ◽  
Pavla Vitková
Keyword(s):  
Real Estate ◽  
Deep Understanding ◽  
Cash Flows ◽  
Free Cash Flow ◽  
Capital Asset Pricing ◽  
The Real Estate ◽  
Asset Pricing Model ◽  
Enterprise Valuation ◽  
Suggested Technique ◽  
Free Cash Flows

The article aims at evaluating a specific enterprise of the Real Estate segment using FCFF (Free Cash Flow to Firm) method. This technique determines the company’s value through free cash flows. Enterprise valuation presents a distinct discipline requiring appraiser’s deep understanding not only of the evaluated enterprise but also other external decisive influences. The theoretical part focuses on calculation procedures using The CAPM (Capital Asset Pricing Model) model quantifying separate variables that determine discount rates. The suggested technique deals with specific financial data of the company and is applicable in evaluating small and medium-sized enterprises.

scholarly journals THE ROLE OF DATA IN THE VALUATION OF AN ENTERPRISE - THE COST OF EQUITY

2020 ◽  
Vol 49 (49) ◽  
Author(s):  
Edyta Piątek
Keyword(s):  
Research Problem ◽  
Cash Flows ◽  
Joint Stock Company ◽  
Cost Of Equity ◽  
Stock Company ◽  
Enterprise Valuation ◽  
Valuation Method ◽  
Valuation Process ◽  
The Right ◽  
The Cost

The valuation of a company is a complex process and requires comprehensive knowledge. The decisions made at each stage have consequences for the next step. The first fundamental stage is to choose the standard of value that the valuer wants to determine. Only then is the appropriate valuation method selected. One of the further factors influencing the outcome of the valuation process is the cost of equity, which takes into account important parameters of the company's operation. It is the cost of equity that causes the most controversy and dilemmas. The research problem analyzed in the article is a way of calculating the cost of equity in enterprise valuation. The example of a specific valuation indicates that the cost of capital cannot be a parameter (data item) covering all risks, but only those that cannot be programmed in cash flows. In the course of research works, the valuation of enterprise B organized in the form of a general partnership as of 29.08.2014 in connection with its contribution by the shareholders to the joint-stock company A as an in-kind contribution increasing the capital was performed. Due to the fact that there is a minority shareholder in joint-stock company A, there is a dilemma of choosing the right value and valuation method and the method of calculating the cost of equity. Neither the literature on the subject in this respect, nor the parties to the transaction, indicate a clear solution, especially as regards the value of the cost of equity.

Specifics of determining the discount rate in the machine-building enterprise valuation

2020 ◽  
Vol 13 (2) ◽  
pp. 167-182
Author(s):  
E.A. Grigor'eva
Keyword(s):  
Discount Rate ◽  
Systems Approach ◽  
Risk Identification ◽  
Machine Building ◽  
Additional Risk ◽  
Enterprise Valuation ◽  
Evaluation Procedures ◽  
Engineering Organizations ◽  
Traditional Approaches ◽  
Building Enterprises

Subject. Currently, there is an increasing need to determine the market value of organizations. Machine-building enterprises have a number of special features that must be taken into account when evaluating the business. Objectives. The focus is on developing certain provisions of methodology and practice for evaluating engineering organizations, namely, the assessment of additional risk of inventory items’ marketability when calculating the discount rate. Methods. The study employs the dialectical method of cognition, the systems approach, economic and analytical research methods. Results. I analyzed the specifics of marketability of inventory items of engineering enterprises and risks related thereto. The paper offers a three-level classification of stock and its risk identification, taking into account the criteria for dividing the stock by purpose, liquidity, and inventory carrying costs in accordance with the included scale. Based on the classification, I developed recommendations for determining the discount rate when evaluating engineering organizations, aimed at additional risk assessment. Conclusions. Evaluation procedures within the framework of traditional approaches and methods applied to machine-building enterprises disregard the risks that are specific to this type of economic activity. The proposed methodology for calculating the discount rate for these organizations is tailored to the specifics of their operation.

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