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Analysis of operating assets for the discounted cash flow model valuation - Part II.: Complex business valuation of the company
[Analýza provozního majetku pro výnosové ocenění podniku - část II.: Komplexní výnosové ocenění podniku]

Author

Listed:
  • Jaroslav Šantrůček
  • Michal Dohányos

Abstract

The article discusses briefly the importance and need for the solution, respectively, it discusses the importance of the introduction of the calculated depreciation to the valuation of the discounted cash flow model. The article derives and explains the importance of the spread function as the difference between ROIC resp. ROA and WACC for estimating parameters that affect the business value. It describes the procedure for quantification of the total capital involved in the operation of the enterprise. It proposes a solution using a set of two equations of two unknown for the simultaneous calculation of the business value and goodwill value within the Value in the Use concept. It provides the necessary feedback among the conclusions of the technical base analyzes, the strategic and financial analyzes, and the value generators, respectively, it provides a consistency check of basic input parameters, including a WACC estimation.

Suggested Citation

  • Jaroslav Šantrůček & Michal Dohányos, 2019. "Analysis of operating assets for the discounted cash flow model valuation - Part II.: Complex business valuation of the company [Analýza provozního majetku pro výnosové ocenění podniku - část II.: ," Oceňování, Prague University of Economics and Business, vol. 12(4), pages 12-30.
    • Handle: RePEc:prg:jnloce:v:12:y:2019:i:4:id:2019_4_02:p:12-30
    DOI: 10.18267/j.ocenovani.237
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    File URL: http://ocenovani.vse.cz/artkey/oce-201904-0002_analyza-provozniho-majetku-pro-vynosove-oceneni-podniku-cast-ii-komplexni-vynosove-oceneni-podniku.php
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    More about this item

    Keywords

    value; business valuation; spread; ROIC; ROA; WACC; calculated depreciation; hodnota; ocenění podniku; kalkulované odpisy;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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