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Sources of enterprise value

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  • Ion, Viorica Mădălina

Abstract

The value of the enterprise has an increased importance in business valuation, so maximizing it becomes a priority for the interested parties, such as its shareholders or investors. The purpose of this article is the analysis of the sources of enterprise value and its factors, in order to understand the causes of the decrease or the possibilities for maximizing the enterprise value, passing over the main concepts in the literature. The analysis refers to the listed companies on the Bucharest Stock Exchange (BVB) from the energy sector, including the largest Romanian company as per its capitalization, OMV Petrom. The research took into account the fact that the analysis of a large company with a long history is facilitated by the existence of multi-annual information, unlike the firms in the early life cycle operating in an emerging market.

Suggested Citation

  • Ion, Viorica Mădălina, 2016. "Sources of enterprise value," MPRA Paper 73146, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:73146
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    File URL: https://mpra.ub.uni-muenchen.de/73146/1/MPRA_paper_73146.pdf
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    References listed on IDEAS

    as
    1. Michael C. Jensen, 2010. "Value Maximization, Stakeholder Theory, and the Corporate Objective Function," Journal of Applied Corporate Finance, Morgan Stanley, vol. 22(1), pages 32-42, January.
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    More about this item

    Keywords

    benefits; cash flow; valuation; price; profit; enterprise value;
    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
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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