COMPARATIVE ANALYSIS OF METHODOLOGICAL APPROACHES TO ENTREPRENEURIAL STRUCTURES VALUATION
Abstract
In the article based on the results of comparative analysis of methodological approaches to valuation of entrepreneurial structures further development impulse was given to theoretico-methodological base of company valuation which highlights importance of using synthesis of methods. Having critically analyzed publications in the field of researching entrepreneurial structures valuation the main area of researching of methodological approaches which are used for valuation was specified. The main nuances of using of titles of income, cost and comparable approaches were specified. The result of analysis of basic entrepreneurial structure valuation approaches was embodied into their pros and cons list. The analysis of the entrepreneurial structure valuation methods allowed to reveal that the list of the main valuation methods within income approach includes discount cash flow method, residual income method, dividend capitalization method, net income capitalization method and earning capitalization method. The most universal method within mentioned approach is discount cash flow method, which, despite having a huge number of assumptions and calculation complication, allows to include the future potential of cash flow, approximate growth level in the enterprenurial structure functioning industry and the level of influence from macroeconomic trends. It was defined that the most essential disadvantage of the methods included into cost approach (determining liquidation value mathods, net book value method, replacement cost method, replacement value method, adjusted book value method and estimation of net market value of tangible assets method) is a low level of access to necessary information. The most advanced valuation method in the terms of objectivity and access to information within mentioned approach is replacement value method, the most universal one is liquidation value method. It was discovered that within comparable approach the most common is relative valuation method and the most advanced one is comparable company valuation method which provides a high level of objectivity and allows to compare the company with its competitors ensuring at the same time a wide multiplicator range.
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Copyright (c) 2020 Kryvovyazyuk I., Burban A.
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