Theoretical framework for the valuation of shares of public companies – principles and methodology Cover Image

Теоретична рамка при оценяването на акции на публични компании - принципи и методология
Theoretical framework for the valuation of shares of public companies – principles and methodology

Author(s): Ralitsa Dimitrova
Subject(s): Social Sciences, Economy, Education, National Economy, Business Economy / Management, Micro-Economics, Higher Education , Financial Markets, Public Finances, Marketing / Advertising
Published by: Нов български университет
Keywords: Intrinsic value; Evaluation pro¬cess; Evaluation approaches

Summary/Abstract: The article discusses the main theoretical considerations when assessing the value of the share capital of public companies. The principles of business appraisal and the factors that affect the value of the company are discussed. The main approaches to business valuation are presented: asset approach, income approach and market approach. A specific methodology has been proposed to determine the intrinsic value of the stock based on three complementary models: the Discounted Dividend Model, the Residual Income Model, and the Market Multiplier Price/ Book Value of Equity. The methodology is used to determine the value of alternative, corporate and business strategies, to manage the value of the company in relation to large-scale deals such as mergers, acquisitions and emerging markets, and to assess the possibility of attracting additional capital resources.

  • Issue Year: 2017
  • Issue No: 1
  • Page Range: 52-65
  • Page Count: 14
  • Language: Bulgarian