Abstract: valuation of a company or business is an orderly, purposeful process of determining the monetary value of an enterprise, taking into account the potential and real income that it generates at a certain time in a particular market.
Portfolio management, mergers and acquisitions, corporate finance – in almost all segments of the country’s financial sector, the evaluation process plays a significant role. However, it is worth noting that the assessment can not be an absolutely objective method and professional subjective opinion will affect the final value of the estimated object.
The valuation of a company includes a huge variety of market factors, such as:
- The time factor;
- Risk factor;
- Model and level of competition in a particular industry;
- Subjective features of the object being evaluated, etc.
It is worth noting that the appraiser chooses methods and approaches based not only on the subjective characteristics of the object of evaluation, but also on the legally established goals and principles of the evaluation process.
Therefore, from what was said earlier, we can draw the appropriate conclusion that the process of evaluating the value of a business is an integral part of the financial sphere, and therefore, an actual topic of research.
Keywords: company valuation; corporate finance; financial resources; profit; company capital