Session
Management, Business and Economics
Description
The models based on assets, dividents, cash flow and returns are identical, however, in the real world, a perfect environment does not exist, thus the results of the models applied throughout the assessment of the companies are different. Therefore, in such an environment, the data used during the capital assessment represent the assessment of the future values and their measurement is important during the predictions.
The aim of the study is to explain the concept of 'market real value' of the companies and the methodological instrumentarium for their assessment, with a special focus on the factors that influence the company's capital value.
Within the scope of the methodological instrumentarium for the assessment of the companies based on the dynamic assessment methods it will be discussed how the financial and contable risks are incorporated in the company's capital value. The methods applied in the study case will be the method of the discount cash flow (DCF), which will be further materialized in three scenarios: basic, optimistic and pesimistic.
For each sceanrio, the relevant factors that determine the elements of cash flow are researched. Each scenario predicts a complete analysis of the company's economy, of its demand and performance. It is formed by the 'basket" of all hypothesis put together and it represents a new hypothetical situation in which the company finds itself.
Keywords:
capital, market real value, assests, divident, risk
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-437-49-3
First Page
84
Last Page
89
Location
Durres, Albania
Start Date
28-10-2016 9:00 AM
End Date
30-10-2016 5:00 PM
DOI
10.33107/ubt-ic.2016.27
Recommended Citation
Jusufi, Bukurie Imeri and Kazazi, Sema, "Application of DCF method in the assessment of company's capital - with a study case" (2016). UBT International Conference. 27.
https://knowledgecenter.ubt-uni.net/conference/2016/all-events/27
Included in
Application of DCF method in the assessment of company's capital - with a study case
Durres, Albania
The models based on assets, dividents, cash flow and returns are identical, however, in the real world, a perfect environment does not exist, thus the results of the models applied throughout the assessment of the companies are different. Therefore, in such an environment, the data used during the capital assessment represent the assessment of the future values and their measurement is important during the predictions.
The aim of the study is to explain the concept of 'market real value' of the companies and the methodological instrumentarium for their assessment, with a special focus on the factors that influence the company's capital value.
Within the scope of the methodological instrumentarium for the assessment of the companies based on the dynamic assessment methods it will be discussed how the financial and contable risks are incorporated in the company's capital value. The methods applied in the study case will be the method of the discount cash flow (DCF), which will be further materialized in three scenarios: basic, optimistic and pesimistic.
For each sceanrio, the relevant factors that determine the elements of cash flow are researched. Each scenario predicts a complete analysis of the company's economy, of its demand and performance. It is formed by the 'basket" of all hypothesis put together and it represents a new hypothetical situation in which the company finds itself.