Valuation of Goodwill Using Weighted Average Return on Assets: Assessment of Average Transport and Storage Enterprise in the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F75081431%3A_____%2F23%3A00002602" target="_blank" >RIV/75081431:_____/23:00002602 - isvavai.cz</a>

Result on the web

<a href="https://jssidoi.org/jesi/article/1040" target="_blank" >https://jssidoi.org/jesi/article/1040</a>

DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Valuation of Goodwill Using Weighted Average Return on Assets: Assessment of Average Transport and Storage Enterprise in the Czech Republic

Original language description

The paper deals with intangible assets - the goodwill of a company and its valuation using the Weighted Average Return on Assets (WARA) method. The paper aims to determine the value of goodwill of an average enterprise in the Transport and Storage sector in the Czech Republic for the period 2016-2020 and then to consider the use and benefits of the WARA method. The data are obtained from the Cribis database of Crif - Czech Credit Bureau, s.r.o. for the period 2016 - 2020; for the paper, an average enterprise in the selected sector was selected, from which the individual items of the financial statements were defined for the preparation of the balance sheet and profit and loss statement. The difference between the income valuation of the company using the net income capitalisation method and the equity valuation was used to calculate the goodwill of the average company, which was then modified using the WARA method. The resulting goodwill value of the average enterprise in the order of hundreds of millions, on the one hand, indicates a long-standing and prosperous enterprise with a sound business name, providing quality services; on the other hand, with such a high value, a possible error in the data can be considered, as the vast data sample provided was difficult to analyse by averaging the data to define the average enterprise in the sector. Further research could be directed again towards the valuation of goodwill by the WARA method, as this research field needs to be strengthened.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

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Continuities

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Publication year

2023

Confidentiality

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

Name of the periodical

Entrepreneurship and Sustainability Issues

ISSN

2345-0282

e-ISSN

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Volume of the periodical

10

Issue of the periodical within the volume

2

Country of publishing house

LT - LITHUANIA

Number of pages

17

Pages from-to

510-526

UT code for WoS article

000908887300032

EID of the result in the Scopus database

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