| Issue: | 2021 №3 (75) |
| Section: | Entepreneurship and economics of enterprise |
| UDK: | 330.131.1 |
| DOI: | https://doi.org/10.33271/ebdut/75.182 |
| Article language: | Ukrainian |
| Pages: | 182-190 |
| Title: | Improvement of industrial enterprises valuation methods |
| Author: | Shtefan N. M., Dnipro University of Technology |
| Annotation: | Methods. The fundamental works of domestic and foreign scientists on the definition and evaluation of business value make the theoretical and methodological basis of the study. Both general and special methods are used in the article: analysis and synthesis – to assess modern methods and approaches used to determine the value of business, and to justify ways to improve the methods; comparative analysis – when studying the main factors of the impact on business value, when determining the advantages and disadvantages of existing ways to estimate business value methods; theoretical generalization – in identifying areas for improvement of business valuation methods. Results. It was found that to obtain the real value of the business, all three approaches to valuation are used (income, cost, market), each of which has its advantages and disadvantages. It was proved that to determine the value of the business, it is necessary to assess the reliability and weight of its assessment by each method. It is established that to take into account the ability of the business to generate profit by the cost method, it is necessary to analyze in more detail the component of equity – on the basis of «Retained earnings» entry, to detect the dynamics of its changes over the recent period and its share in equity. The study allowed establishing the possibility of applying an income approach to assessing the value of business for unprofitable enterprises if its losses are obtained through financial activities. In this case, as a basis for preliminary cash flow calculations, it was suggested to use profit only from operating activities with its further adjustment to discounted financial expenses. This will increase the weight of the cost approach to business valuation. Novelty. The study identifies not only the advantages and disadvantages of methods of assessing the value of business, but also suggests ways to improve them by expanding the scope of various methods. There has been determined the relationship between the depreciation rate of fixed assets and the weight of each approach to assessing the value of business (separately for profitable and unprofitable enterprises) in determining their final value. Practical value. The study made it possible to establish the importance of each of the approaches to assess the value of the business for each individual enterprise depending on the state of its assets. The practical value of the obtained research results lies in the possibility of their use in determining the value of Ukrainian enterprises. |
| Keywords: | Business valuation, Income approach, Cost approach, Market approach, Improvement of business valuation methods |
| File of the article: | EV20213_182-190.pdf |
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