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Estimation of capital structure for the purposes of market valuation of a company in the conditions of the Czech Republic - Part 1
[Odhad kapitálové struktury pro účely tržního oceňování podniku v podmínkách ČR - 1. část]

Author

Listed:
  • Pavla Maříková
  • Andrej Tóth

Abstract

The aim of the article is based on data from the Amadeus database to find out to what extent it is appropriate to take over the average indebtedness of companies on foreign capital markets for the valuation of companies operating in the Czech Republic, which are in most cases non-traded companies. The first part of the article focused on three sectors: paper production, chemical production and electricity production. The capital structure of companies in the Czech Republic, Poland, Germany, France and the United Kingdom was examined.The analysis shows that taking on the indebtedness of companies operating in foreign markets is not suitable for Czech companies, for two main reasons: 1) non-traded companies are significantly less indebted than traded companies, 2) market structures of foreign traded companies in the surveyed sectors are widely dispersed. and show no narrower range of normal values.

Suggested Citation

  • Pavla Maříková & Andrej Tóth, 2021. "Estimation of capital structure for the purposes of market valuation of a company in the conditions of the Czech Republic - Part 1 [Odhad kapitálové struktury pro účely tržního oceňování podniku v ," Oceňování, Prague University of Economics and Business, vol. 14(2), pages 28-58.
    • Handle: RePEc:prg:jnloce:v:14:y:2021:i:2:id:2021_2_02:p:28-58
    DOI: 10.18267/j.ocenovani.261
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    More about this item

    Keywords

    market value; business valuation; capital cost; capital structure; discount rate; tržní hodnota; ocenění podniku; náklady kapitálu; kapitálová struktura; diskontní míra;
    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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