The company valuation can be done by adopting several models, among them: the market multiples model; the model based on the balance sheet, the model based on the income statement, and the model based on discounted cash flow.
In this context, which methodologies are most effective for this purpose, and which is the best evaluation model?
There is no straight forward answer to it. It all depends on the purpose and scenario.
Thank you for this important question. We have many methods of company valuation. I distinguish and use two basic methods: property and income. The valuation can be made on the basis of financial statements and at the most advanced level by carrying out a local vision and examining the components of a given company on the spot and in its immediate physical and legal environment. In fact, the fair valuation of an enterprise is influenced by a large number of factors, some of which are not disclosed in the financial statements (in order to discover risk factors, an internal audit of the business entity is required). On the other hand, the selection of the method depends on who the valuation is to be performed for, what is the purpose of the valuation (what business process) and in what situation the audited company is in (for example, will there be a going concern, will there be liquidation of the company, will there be a merger or incorporation of another a smaller company). Personally, in valuations, I prefer the income (DCF) methods of company valuation based on the exact calculation of the cost of equity and cost of capital in relation to a specific company. My main argument in such a valuation process is the application of a forecast of the company's functioning using quantitative and qualitative methods, also referring to the company's strategy and its planned most important business transactions. Best regards
Regression Analysis where you can find the results and compare with original results..
Regression Analysis where you can find the results and compare with original results..
Regression Analysis where you can find the results and compare with original results..
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