Non-Quantitative Measures in Company Evaluation
Non-Quantitative Measures in Company Evaluation

Summary/Abstract: In order to explore the information needed for evaluating companies both factors affecting the value of a company and sources of information needed for this purpose have to be considered. The usual documents that are expected to be examined are the accounting documents (balance sheets, income statements, annual reports, cash flows, etc.). Several questions arise regarding the accuracy of figures provided in these documents and reflecting the past activity of the company, i.e. whether these figures are realisable enough to give a real overview of the value and performance of a company or whether to start the evaluation on the basis of financial data or whether to find out which subjective and hardly measurable factors affect the company value. This study provides criticism of the accounting information, the most popular evaluation methods and their criticism, non-quantitative factors determining company value (value drivers), and accentuated role of human factors (work force and organisation, loyalty, business relationships) in company evaluation.

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