Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/66752
Authors: 
Patena, Wiktor
Year of Publication: 
2011
Citation: 
[Journal:] e-Finanse: Financial Internet Quarterly [ISSN:] 1734-039X [Volume:] 7 [Year:] 2011 [Issue:] 3 [Pages:] 75-84
Abstract: 
Company valuation is not done after having generated a few values being a result of applying different valuation methods. In many cases institutions ordering the valuation request a value which can be an equivalent of a market, transactional value. Often the one method (and the valuation resulting from the method) can be indicated, since the valuer claims that it gives the most precise value of the company. However, it is safer to consider the range of values and then try to determine the final value which is the result of a combination of several methods. However, the question is how to consistently deal with a range of values. One of the solutions are so-called mixed methods of company valuation. They are criticized in this paper as they are too subjective. Instead we suggest considering a portfolio approach PATEV (Portfolio Approach to Equity Valuation). In addition to having to choose a method of defining one value, the value is subject to further corrections: liquidity and control discounts.
Subjects: 
company valuation
range of values
liquidity discounts
JEL: 
G32
C53
G12
Document Type: 
Article

Files in This Item:
File
Size
391.43 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.