Relative Valuation of Private Held Companies: Valuation Multiples in the Czech Brewing Industry

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F22%3A43922024" target="_blank" >RIV/62156489:43110/22:43922024 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.1515/jbvela-2021-0023" target="_blank" >https://doi.org/10.1515/jbvela-2021-0023</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1515/jbvela-2021-0023" target="_blank" >10.1515/jbvela-2021-0023</a>

Result language

angličtina

Original language name

Relative Valuation of Private Held Companies: Valuation Multiples in the Czech Brewing Industry

Original language description

This article focuses on the topic of the relative valuation from the perspective of non-publicly traded companies and the determination of industry multiples allowing the subsequent application of this approach to specific industries. I chose the Czech brewing industry as the target industry, represented by the 50 most important entities (covering more than 99% of the industry&apos;s turnover). Due to the fact that no market value data are available for this type of company, I first used an income valuation approach - the discounted cash flow (DCF) method to assess the market value of each company in the sample. I then quantified valuation multiples of P/E, EV/EBIT, EV/EBITDA, P/S, EV/S, P/BV, and EV/IC for each company, from which I determined industry statistics. I verified their suitability for use in the relative valuation approach and compared them with the results of existing studies on the most commonly used valuation approaches in the Czech Republic. Furthermore, I compared my own calculations of industry multiples for non-publicly traded companies with available data on industry multiples of publicly-traded companies in the brewing industry across Europe. The results of the comparison show that these multiples are on average lower for non-publicly traded companies than for listed companies.

Czech name

—

Czech description

—

Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

—

OECD FORD branch

50206 - Finance

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Business Valuation and Economic Loss Analysis

ISSN

1932-9156

e-ISSN

1932-9156

Volume of the periodical

17

Issue of the periodical within the volume

1

Country of publishing house

DE - GERMANY

Number of pages

36

Pages from-to

65-100

UT code for WoS article

—

EID of the result in the Scopus database

2-s2.0-85137942164