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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2022

Kód důvěrnosti údajů

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

Název periodika

Journal of Business Valuation and Economic Loss Analysis

ISSN

1932-9156

e-ISSN

1932-9156

Svazek periodika

17

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

DE - Spolková republika Německo

Počet stran výsledku

36

Strana od-do

65-100

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85137942164