Key Input Factors for Discounted Cash Flow Valuations

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F14%3A43871334" target="_blank" >RIV/70883521:28120/14:43871334 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Key Input Factors for Discounted Cash Flow Valuations

Original language description

Business valuation becomes requisite not only because of the recent trend of mergers and acquisitions but of course regarding to identification of economic value creation sources. This paper examines weighted average cost of capital and terminal growth rate as the key input factors that is needed for discounted cash flow valuation and can alter the valuation results considerably. A practical example of this implication is given using sensitivity analysis. A special emphasize is being put on the overviewof methods that are used by appraiser´s in nowadays Czech practice to calculate the equity cost. The following part of analysis is focused on investigation of the inherence of the fundamental assumptions that led appraisers to determination of terminalgrowth rate, the rate that influence the business value considerably.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AE - Management, administration and clerical work

OECD FORD branch

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Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2014

Confidentiality

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

Name of the periodical

WSEAS Transactions on Business and Economics

ISSN

1109-9526

e-ISSN

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Volume of the periodical

2014

Issue of the periodical within the volume

11

Country of publishing house

GR - GREECE

Number of pages

11

Pages from-to

454-464

UT code for WoS article

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EID of the result in the Scopus database

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