Влияние на някои нетрадиционни източници на дългосрочно финансиране при оценка на пазарната стойност на непублични компании в реалния бизнес
Influence of Some Unconventional Sources of Long-Term Financing in Estimating the Market Value of Non-Public Companies in the Real Business

Author(s): Evgeni Raykov
Subject(s): Economy, Business Economy / Management
Published by: Университет за национално и световно стопанство (УНСС)
Keywords: non-traditional sources of long-term capital; cost of capital; market valuation of a company; economic crisis and shocks
Summary/Abstract: The current study offers a unconventional approach to companies’ financial assessment in times of crisis and external shocks impact which suggests that changes in companies’ values are much more related to liquidity and cash flow volatility than to longterm investment effects or expected returns and risk. This specific dynamics should be reflected in the applicable rate of return for the assessment which is a direct reflection of the fixed working capital, the relevant capital structure of the non-standard longterm working capital sources and the individual cost of capital for each single source. Consequently the resulted value of the business in relation to its potential sale should be as close as possible to the price formed by the supply and demand side on the market, reflecting the current long-term impacts instead of the conceptual approach based on investment and return-related effects. Meanwhile the alternative average cost of capital will reflect the company’s ability to compensate for the negative macroeconomic effects of a crisis through liquidity and working capital management and to preserve the company’s value before the shock.

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