ENHANCING THE ADJUSTMENTS OF MARKET MULTIPLES FOR BETTER OPERATING EFFICIENCY Cover Image

ENHANCING THE ADJUSTMENTS OF MARKET MULTIPLES FOR BETTER OPERATING EFFICIENCY
ENHANCING THE ADJUSTMENTS OF MARKET MULTIPLES FOR BETTER OPERATING EFFICIENCY

Author(s): Nigohos Kanaryan
Subject(s): Economy, Business Economy / Management
Published by: Стопанска академия »Д. А. Ценов«
Keywords: market approach; amrket multiples; enterprise valuation

Summary/Abstract: The study focuses on one of the specific applications of the market approach. The market approach is a valuation method whereby the fair market value of the target company is determined by reviewing comparable companies with similar operational and financial characteristics. The International Valuation Standards (2017) require that a valuer should make adjustments to the selected market multiples. Kasarova, Pramatarska and Lazarova (2009) and Todorov (2015) propose a method for adjusting market multiples for country risk and efficiency when the market approach is applied to emerging markets. We enhance their adjustment approach by removing its inherent restrictions.

  • Issue Year: 2019
  • Issue No: 4
  • Page Range: 3-20
  • Page Count: 18
  • Language: English
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