Differentiated Estimates of Valuation Multipliers based on Price-to-Book Ratio for the Czech Brewing Industry

Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F22%3A43921727" target="_blank" >RIV/62156489:43110/22:43921727 - isvavai.cz</a>
Result on the web
<a href="https://doi.org/10.11118/actaun.2022.011" target="_blank" >https://doi.org/10.11118/actaun.2022.011</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.11118/actaun.2022.011" target="_blank" >10.11118/actaun.2022.011</a>

Result language
angličtina
Original language name
Differentiated Estimates of Valuation Multipliers based on Price-to-Book Ratio for the Czech Brewing Industry
Original language description
This article focuses on the differentiated estimations of industry multipliers in relation to Price-Book Value ratio (P/BV) with applying for the Czech brewing industry. Differentiation of estimates brings better approximation of these sector-wide multipliers to the defined groups companies within the given markets and thus increases the accuracy of the method of relative business valuation. Due to the absence of market data on privately held companies, the market value was assessed using the DCF method, while the book value was taken from the enterprise's accounts. The assumption of the linearity of the market-book value relationship for the subsequent calculations and differentiation of P/BV estimations was verified using regression analysis. The differentiation of P/BV ratio was made according to the size of entities, but mainly based on equality of market and book value, respectively according to the equality P/BV = 1. Then our results were supplemented by the calculation of industry P/BV ratio using P/EAT ratio and ROE decomposition. Using this additional method, the brewing industry was compared with other relevant industries in the Czech Republic.
Czech name
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Czech description
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Type
J<sub>SC</sub> - Article in a specialist periodical, which is included in the SCOPUS database
CEP classification
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OECD FORD branch
50206 - Finance

Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical
Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis
ISSN
1211-8516
e-ISSN
2464-8310
Volume of the periodical
70
Issue of the periodical within the volume
3
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
15
Pages from-to
131-145
UT code for WoS article
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EID of the result in the Scopus database
2-s2.0-85134023059

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