УПРАВЛЕНСКИ ФИНАНСОВ АНАЛИЗ НА ЗАСТРАХОВАТЕЛНИТЕ ПОСРЕДНИЧЕСКИ ФИРМИ -СРАВНИТЕЛЕН АНАЛИЗ НА МОДЕЛИ НА СВОБОДНИТЕ ПАРИЧНИ ПОТОЦИ
MANAGERIAL FINANCIAL ANALYSIS OF INSURANCE BROKERS – COMPARATIVE ANALYSIS OF FREE CASH FLOWS MODELS

Summary/Abstract: The financial management of an insurance brokerage firm requires constant control over the effects of internal and external factors on the financial condition of the firm. A good base for this may be provided by valuation models. This research paper compares the main variations of the free cash flow approach. Public data for the top level insurance brokers has been gathered and theoretical values of their shares have been calculated. Judging by the deviation that these values have from the actual historical prices a conclusion is made that the most accurate results are provided by the FCFE model as formulated by Damodaran (Valuing Financial Service Firms, 2013). A common problem of all models is the way they truncate the cash flows that are “to infinity” by calculating a terminal value.

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