ENTERPRISE VALUATION AND VALUE BASED MANAGEMENT IN CONDITIONS OF INSTABILITY

ISBN: 978-83-64614-23-1

172 stron
format: B5
oprawa: miękka
Rok wydania: 2016

Recent years have been a period of instability and growing uncertainty, i.e. the growing importance of what is unpredictable and immeasurable. This has a huge impact on, among others, the financial situation of countries, companies and citizens. Proponents of quantitative methods in economics equate instability and insecurity to volatility, which is for them a key determinant of risk. This risk is usually measured using variance, covariance, standard deviation, coefficient of variation, or the beta factor. Lower levels of these measures mean lower volatility and lower risk.
The development of the capital market has meant, that a manager, when making decisions, must try to predict their impact on future profits of the enterprise, and especially determine whether these decisions will result in increasing companie‘s value. The management of each company must continually ask themselves the question, whether their management actions multiply the value of the company. Therefore there are many important factors that, it‘s worth to look at the different models of business valuation and problems associated with in these issues. We write about in this book.
from Introduction

SPIS TREŚCI

Introduction

1. Motives of performing business valuations

2. Increasing enterprise value as a main objective of activity

3. Motivating managers to achieve increase in value - rewarding
short-term ‘success‘
3.1. Shareholders‘ rights and equal treatment of shareholders
3.2. The role of various interest groups in corporate governance -
the problem of corporate social responsibility
3.3. The impact of information on investors‘ decisions

4. Value Based Management as management concept

5. Theoretical basis of valuation

6. Property valuation methods
6.1. The book value
6.2. Liquidation method
6.3. Replacement method

7. The enterprise goodwill valuation

8. Income methods
8.1. The problem of determining the forecast period
8.2. The discount rate
8.3. Valuation based on discounted cash flows (DCF)
8.4. The residual value
8.5. Adjusted present value
8.6. Models based on dividends capitalization
8.7. Valuation of bonds

9. Comparative (Market) Methods

10. Mixed Methods

11. Unconventional methods - valuation of options

12. Difficulties, misunderstandings, errors and manipulations
in the valuations

13. The enterprise valuation under conditions of increasing instability

Summary

Bibliography