The Effects of a Change in the Environment on Business Valuation Using the Income Capitalization Approach

• Authors: Mária Režňáková , Michal Karas
• Languages of publication: EN

Abstracts

EN

Determining the company value in the conditions of unstable development is a very difficult, almost sophisticated activity. The experience of authors confirms high sensitivity of the resulting company value in relation to critical input parameters, which are known as value drivers. One of these drivers, in case of determining the company value using the income capitalization approach, is the expected sales. In practice, some authors, but mainly experts, limit sales forecast to extrapolation of the identified trend of the past development, while neglecting the importance of the strategic analysis. The aim of the strategic analysis is to identify all factors which may influence future company objectives, i.e. also future sales. This article provides a possible approach to the correction of sales forecast based on the information gained from the strategic analysis.

Keywords

EN

strategic analysis; business valuation; sales forecast process

• Publisher: Instytut Badań Gospodarczych
• Journal: Equilibrium. Quarterly Journal of Economics and Economic Policy
• Year: 2012
• Volume: 7
• Issue: 2

Dates

published

2012

online

2012-06-06

Contributors

author

Mária Režňáková

• Vysoké ucení technické v Brne, Fakulta podnikatelská, Kolejní 2906/4, 612 00 Brno, Czech Republic
• Vysoké ucení technické v Brne, Fakulta podnikatelská, Kolejní 2906/4, 612 00 Brno, Czech Republic

author

Michal Karas

• Vysoké ucení technické v Brne, Fakulta podnikatelská, Kolejní 2906/4, 612 00 Brno, Czech Republic
• Vysoké ucení technické v Brne, Fakulta podnikatelská, Kolejní 2906/4, 612 00 Brno, Czech Republic

Identifiers

DOI

10.12775/EQUIL.2012.014