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The impact of IFRS 16 on EV/EBITDA and business valuation
[Vliv implementace účetního standardu IFRS 16 na výši ukazatele EV/EBITDA a ocenění podniku]

Author

Listed:
  • Pavel Huňáček
  • Ondřej Jíša

Abstract

This article deals with an analysis of an impact of accounting standard IFRS 16 leases on EV/EBITDA multiple. The analysis was done on a sample of companies from industry groups "Air transport" and "Retail (Grocery and Food)", which are used by professor Damodaran in calculation of data provided by him. Initially a research of companies included in these groups has been carried out. Then subsequently an impact of IFRS 16 application, based on financial data from financial statements of selected companies, on Enterprise value and its components was assessed. Impacts on EBITDA were also assessed. To conclude the analysis, a total impact on EV/EBITDA multiple was quantified, based on which, recommendations on the use of EV/EBITDA were made.

Suggested Citation

  • Pavel Huňáček & Ondřej Jíša, 2021. "The impact of IFRS 16 on EV/EBITDA and business valuation [Vliv implementace účetního standardu IFRS 16 na výši ukazatele EV/EBITDA a ocenění podniku]," Oceňování, Prague University of Economics and Business, vol. 14(1), pages 34-46.
    • Handle: RePEc:prg:jnloce:v:14:y:2021:i:1:id:2021_1_03:p:34-46
    DOI: 10.18267/j.ocenovani.258
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    References listed on IDEAS

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    1. Rolf Uwe Fülbier & Jorge Lirio Silva & Marc Henrik Pferdehirt, 2008. "Impact of Lease Capitalization on Financial Ratios of Listed German Companies," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 60(2), pages 122-144, April.
    2. Sylvain Durocher, 2008. "Canadian Evidence on the Constructive Capitalization of Operating Leases," Accounting Perspectives, John Wiley & Sons, vol. 7(3), pages 227-256, August.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Leases; IFRS 16; EV/EBITDA; Nájmy;
    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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